The Sustainable Finance Disclosures Regulation (2019/2088) (SFDR) (Level 1) requirements are now in effect.

In summary, SFDR aims to provide investors (prospective members, members, and beneficiaries in the case of pension schemes) with information on how financial service providers:

• take into account non-financial sustainability risks when making investment decisions;
• whether and how they assess the impact of their investments on environmental and social matters; and
• if they offer financial products that have a sustainability strategy or objective, how they plan to achieve that objective.

SFDR requirements related to financial service providers and products will apply to Irish pension schemes. As a result, pension trustees will need to ensure their schemes comply with the requirements under both headings.

In this briefing, our Pensions Team focuses on the SFDR (Level 1) disclosures a pension scheme, as an in-scope financial service provider, needs to make in respect of its investment activities and the steps trustees may take to ensure compliance.