Alerts Archive

LMA Response and Recommendations on the European Commission's Sustainable Finance Disclosure Regulation Proposals

The 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 

• 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. 
• 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.   
• 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.  
• 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. 

The full response document is available to download here: LMA SFDR 2.0 paper. 

Contact LMA Experts 

To discuss the position paper, please contact Gemma Lawrence-Pardew at Gemma.Lawrence-Pardew@lma.eu.com.