Press Release: LMA Releases Position Paper on SFDR 2.0 Proposals
19 February 2026The Loan Market Association (LMA) is pleased to announce the publication of its official response to the European Commission’s recent proposals (Proposals) to amend the Sustainable Finance Disclosure Regulation (SFDR 2.0).
This paper outlines the LMA’s considered position on the Proposals drawing on feedback from our diverse membership as well as wider market stakeholders. It addresses key challenges and ambiguities identified as part of this process and includes recommendations to support the EU’s sustainability objectives.
Key views and recommendations
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As the recognised voice of the loan markets across EMEA, the LMA welcomes the European Commission’s proposed amendments to the Sustainable Finance Disclosure Regulation, acknowledging these changes as an important advancement in streamlining and enhancing transparency within the sustainable finance disclosure framework.
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The LMA recognises that the Proposals aim to address several key challenges and ambiguities present in the current regime - lowering the administrative burden on financial market participants and improving clarity and usability by simplification of templates and removal of entity-level PAI statements. LMA members also support the introduction of the three new criteria-based categories including the introduction of a new “Transition” category, which provides much needed clarity for implementing brown-to-green strategies.
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The paper also highlights areas where the Proposals remain unclear and/or may present challenges to financial market participants - the need to align mandatory exclusions with existing regulations, additional clarity on the discretionary use of PAI indicators at product level, further detail on disclosures of sustainability claims for Article 6a and the overarching need to ensure interoperability and alignment across regulatory regimes.
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The LMA continues to engage with its members and stakeholders to identify emerging issues and provide feedback to policymakers, ensuring that the evolving regulatory framework remains practical, effective, and aligned with market developments.
Gemma Lawrence-Pardew, Head of Sustainability, Loan Market Association:
“The European Commission’s proposals to reform SFDR are a welcome and necessary step towards a clearer, more workable disclosure framework for sustainable finance. Greater simplicity, legal certainty and a more practical product categorisation regime will help reduce administrative burden while supporting the flow of capital into sustainable and transition focused lending. It is essential, however, that SFDR 2.0 is implemented with clear timelines, proportionate requirements and strong alignment with other global sustainability frameworks to ensure it delivers real value for both investors and market participants focused lending. It is essential, however, that SFDR 2.0 is implemented with clear timelines, proportionate requirements and strong alignment with other global sustainability frameworks to ensure it delivers real value for both investors and market participants.”
Evelien Alblas, EU Regulatory and Public Affairs Manager (Consultant), Loan Market Association:
“SFDR 2.0 plays a critical role in investment decision-making related to sustainable lending. By addressing complexity and improving usability, these proposals have the potential to strengthen both market confidence and the effectiveness of the EU’s sustainable finance framework.”
The full response document is available to download here: LMA SFDR 2.0 paper.
Contact LMA Experts
For media enquiries or to discuss the LMA’s response and recommendations in detail, please contact Leyla Ghaffar-Zadeh, Head of Communications, LMA at Leyla.Ghaffar-Zadeh@lma.eu.com.