Worldfavor is presenting its 2023 study “Ready or not…” exploring the state of SFDR reporting for investors. From clarifying data collection to addressing principal adverse impacts, the study offers valuable insights into how financial market participants worldwide prepare for compliance as they approach the mandatory disclosure deadline.
Worldfavor is a digital platform provider that enables businesses to collect, manage and report their sustainability information. Worldfavor's global network connects organizations worldwide to access, share and gain insights from sustainability and compliance data.
Today, Worldfavor is proud to present its new study, “Ready or not…” exploring the state of EU’s Sustainable Financing Disclosure Regulation, more commonly referred to as SFDR.
SFDR is the EU's first regulation to redirect capital flows toward sustainable financing and increase transparency among financial institutions and market players. At the beginning of 2023, it entered its level two-phase, which means that financial market participants with more than 500 employees are obligated to disclose their ESG information by June 30th.
Following these developments, Worldfavor designed a study for the purpose of gaining a greater understanding of how financial market participants perceive SFDR, work with it in practice, and what challenges and opportunities they see for the future of reporting. The answers were generated from a survey sent to Worldfavor's extended network of financial market participants. The study findings provide insight into the thoughts, actions, and experiences of participants affected by the new requirements.
Key study insights:
- 48% of respondents collect data due to some type of requirement – either because they are personally obligated to collect PAIs or to answer LP demands.
- 38% of respondents are collecting because they’re preparing “for future readiness.”
- 39% of respondents know what data they need to collect and have started gathering it.
- 22% of respondents say they haven't started data collection yet.
- 16% of respondents say they don’t know what data they need in the first place.
- 9% of respondents know what they need but don’t have access to it.
- 14% of respondents have brought in an external SFDR consultant.
- 16% of respondents collect their data manually.
- 29% of respondents are using multiple digital tools to collect their data.
- 25% use a single digital tool to collect, manage and review their data in one place.
The three main challenges respondents experience when trying to acquire data from portfolio companies are a lack of knowledge on the topic (36%), gaps in the data (32%), and uncertainty about what data to collect (30%).
For the future of reporting, respondents stated that they wish to see more clarity in regulations, clarity on how data should be calculated, more alignment across sectors, more efficient data collection processes, and more guidance and understanding, among other things.
To learn more, download the study below.
For further information, please contact
My Morinder
PR & Communications Manager
+46 (0) 704-98 14 62
About Worldfavor
Worldfavor is a global platform for sustainable business decisions. The company was founded in 2016 based on the idea that every person and business can create a difference by making sustainable decisions. Worldfavor has experienced extraordinary growth since the launch and has seen year-on-year surges in user uptake. Ever since the start, Worldfavor has attracted leading organizations, and the company is proud to have clients in industries from food to finance, ranging from medium-sized enterprises to Fortune 500 companies. Prominent clients include Nudie Jeans (frontrunner in sustainable denim production), IK Partners (European private equity advisory group with Nordic roots, operating across Northern Europe), Systembolaget (the Swedish monopoly for alcohol), Oatly (Swedish food company that produces oat-based alternatives to dairy products), Oakley Capital (private equity investor) and Grant Thornton (one of the world's largest accounting and consulting firms).
