Banking 2026: SFDR + EmpCo — Double Regulation for “Green” Funds

The financial sector is subject to double regulation: SFDR (Sustainable Finance Disclosure Regulation, EU 2019/2088) for disclosure to investors AND, from 27 September 2026, EmpCo for advertising statements to consumers.

SFDR fund classification: Article 6 — Funds WITHOUT explicit sustainability consideration. Article 8 — Funds that PROMOTE sustainability features (“Light Green”). Article 9 — Funds with a sustainable investment objective as their MAIN PURPOSE (“Dark Green”). In 2024, over 300 funds lost their Article 9 classification due to insufficient methodology.

EU Taxonomy as additional substantiation: Defines which economic activities are considered “sustainable”. Fund providers must disclose the EU Taxonomy share as a percentage — e.g. “65 % of investments flow into EU Taxonomy-aligned activities”.

Reformulation examples: ❌ “Green fund for the future” → ✓ “SFDR Article 9 Impact Fund, EU Taxonomy share 78 %, focus on renewable energies Europe”. ❌ “ESG-oriented investment” → ✓ “Investment strategy according to MSCI ESG-Leaders-Index (AAA-rating focus), exclusion of fossil fuels, weapons, tobacco”.

Monitoring marketing channels: Fund prospectuses and KIID documents are primary mandatory documents (supervised by BaFin). But website texts, advertising banners, and influencer posts must also be EmpCo-compliant. A general advertising statement such as “sustainable investing” immediately requires a link to the SFDR disclosure.

Special feature: Greenwashing lawsuits: BaFin imposes fines for violations of SFDR (up to 10 % of group turnover). In addition, DUH, Foodwatch and qualified consumer associations are suing. Double risk: supervisory sanctions + civil injunction.