PRESS RELEASE
BETTER FINANCE
Brussels, 20 November 2025
As the European Commission publishes its proposal to revise the Sustainable Finance Disclosure Regulation (SFDR), BETTER FINANCE welcomes steps towards improving the framework but urges policymakers to ensure that reforms truly strengthen clarity, credibility and investor protection. Simplification is welcome, but not if it results in weaker transparency or reduced safeguards for Europe’s citizens.
BETTER FINANCE Welcomes the Transition Category
BETTER FINANCE welcomes the introduction of a dedicated Transition category – a long-standing request from our organisation and other stakeholders – as a positive step towards channelling capital into high-impact decarbonisation. To protect savers, transition-labelled products must still demonstrate a credible and measurable pathway to real-world improvements. While active investor engagement is an essential tool for driving such change, it is not the only
New Categories Need Meaning, Not Marketing
The proposed three product categories – sustainable, transition, and ESG basics – could improve clarity only if backed by robust, verifiable criteria. As currently presented, they risk creating broad and overlapping labels that do little to help individual investors understand what their money finances. In particular, a wide “ESG basics” category would risk becoming a catch-all for products with limited sustainability merits, increasing confusion rather than reducing it.