SFDR Reporting
For VC and PE Investors

The EU Sustainable Finance Disclosure Regulation (SFDR) is here and requires financial market participants to report on the sustainability of their portfolios. Our SFDR reporting solutions give you the necessary tools to turn the regulation from a necessity into a business opportunity.

SFDR: Mandatory for VC and PE investors

The EU Sustainable Finance Disclosure Regulation (SFDR) aims to increase the transparency about the sustainability performance of financial market participants in Europe. It requires EU-regulated asset managers and financial advisors to disclose how they consider sustainability in their portfolios and to explain to investors and clients how they do so.

Learn more about how the SFDR affects venture capital and private equity investors.

SFDR: Report along articles 6, 8 & 9

Funds have to define their sustainability approach, ranging from not considering sustainability (so-called Art. 6 funds) to having clear sustainability investment objectives (so-called Art. 9 funds), and they have to report in line with their sustainability approach.

SFDR Article 6 "grey"

Funds without sustainable characteristics

Explain if and how sustainability risks are considered

SFDR Article 8 "light green" and "medium green"

Funds that promote environmental & social characteristics

For all portfolio companies show how they contribute to the promoted environmental & social characteristics.

Optional: A share (<75%) of portfolio companies can, but it does not have to contribute to a sustainable investment objective (unofficially called article 8+ “medium green” funds)

SFDR Article 9 "dark green"

Funds that have a sustainable investment objective

For >75% of investments they must show how they contribute to the sustainable investment objective

Our solutions make SFDR reporting easy

SFDR: Sustainable objectives

The impact goal module allows to define impacts, link them to the EU taxonomy, international standards & track progress

SFDR: Guided indicator reporting

The indicator module helps to collect KPIs for SFDR reporting using the official PAI indicators, standards like iris+ or self-defined metrics.

SFDR: ESG management assessment

An assessment of environmental and social characteristics that allows to benchmark,  provides improvement tips to companies and assess Do No Significant Harm (DNSH)

SFDR portfolio management: Get an easy overview of SFDR reporting status

To make portfolio management and reporting as efficient as possible for investors, they can manage the sustainability of their entire portfolio in our tool with a few clicks.

SFDR portfolio management: Benchmark the entire portfolio.

To make portfolio management and reporting as efficient as possible for investors, they can manage the sustainability of their entire portfolio in our tool with a few clicks.

SFDR portfolio management: Assign tasks to portfolio companies

Investors can use our tool to assign and track tasks for portfolio companies.

SFDR portfolio management: Automatically generate reports & export data

We provide investors with automatic reports for individual companies as well as portfolio-level reports in line with SFDR requirements. Of course, exporting data to prepare reports on your own is also possible.

Modules optimized for SMEs that allow to report & help to improve

Our solution can be used for all kinds of funds to assess and manage their sustainability performance. In our SFDR offering, we focus on funds that want to comply with article 8 (”light green”, “medium green”) or 9 (”dark green”). Their portfolio companies obtain access to different modules depending on the sustainability approach of the fund.

Sustainable objectives

To report a fund’s adherence to sustainable investment objectives, we gather data about the impacts of each portfolio company in our impact goal module. It allows companies to define impacts in line with the international best practices of the Impact Management Project and other frameworks.

Guided indicator reporting

We help funds to collect the indicators they need from their portfolio companies. The regulation wants investors to report 14 indicators in table 1 and at least one additional environmental indicator and one social indicator of the SFDR Annex I. But funds can also define their on indicators.

ESG management assessment

We developed a 30-minute assessment of a company’s ESG (environmental, social and governance) management. Having worked with hundreds of SMEs on sustainability, we saw the need to get away from lengthy and complex Excel files that overwhelm companies.

Adverse impact screening (Q4, 22')

Based on our growing impact knowledge database, we analyze automatically which sustainability risks a company is most likely exposed to. For this initial assessment, a company must only share a few basic information about the company and the products and services it uses.

SFDR: Our methodology

The ImpactNexus SFDR offering has been designed specifically to help investors (VCs & PEs) and their portfolio companies (SMEs) in the annual reporting. 

Learn more about how ImpactNexus unlocks the potential of combining the SFDR regulation with impact management. 

Interested to learn more about our solutions?

Schedule a demo to talk to one of our representatives and learn how ImpactNexus can help your company to manage sustainability topics.