Category 8 or 9 under the Sustainable Finance Disclosure Regulation (SFDR)?
Pressure from investors on asset management to categorize their funds as article 8 or 9 under the Sustainable Finance Disclosure Regulation (SFDR) has led to a broad and varying range of funds being listed under category 8 that will lead to further misunderstanding and greenwashing. There are many funds classified as Article 8 that do not look as ESG (Environmental, Social and Governance) – this may come as a surprise to investors. The fact is that these funds are required to consider ESG but do not have ESG-binding criteria. Banks therefore sell them as sustainable and green but this is where there is confusion in the market, and it is giving asset managers the chance to greenwash; they are saying the fund is now categorised as Article 8 but nothing in the investment objective or portfolio has changed.
The independently certified Nature Inclusive Solar Certification (BRL K11007) standard can help solar developers, such as Electriffy to help categorize their company and project under Category 9 (Impact Investment) when funded by investment firms. This will prevent even the slightest misunderstanding of greenwashing. We work with leading banks, asset managers and investment funds to help quality oriented solar farm developers with categorizing their project under category 9 and help prevent any misunderstanding.