Overview
- Brussels would replace the Article 8/9 distinction with Sustainable, Transition and ESG Basics categories, each requiring at least 70% of assets aligned to the stated strategy and applying category-specific exclusions that bar controversial weapons and tobacco and tighten fossil-fuel exposure for higher-ambition products.
- Entity-level principal adverse impact and remuneration-policy disclosures would be scrapped to align with CSRD, while product-level PAI would remain for Sustainable and Transition products.
- Categorised products would use concise, standardised pre-contractual, website and periodic statements capped at two pages, non-categorised funds would keep a baseline disclosure, and voluntary statements under a new Article 6a would be tightly limited.
- Naming and marketing would be restricted so only qualifying products can use sustainability terms, non-categorised funds could not make sustainability claims, and “impact” language would be allowed only for products meeting an additional test.
- The scope would narrow by removing portfolio management and investment advice, grandfathering would be limited to certain closed-ended AIFs, and the proposal targets application around late 2028 following an 18‑month implementation period.