Sustainable finance update (asset management) – entry into force of the ESG Ratings Regulation and amendment of SFDR

As explained in more detail in our 3 February 2026 Newsflash, on 2 July 2026, Regulation (EU) 2024/3005¹ (the “ESG Ratings Regulation”) became applicable.

Further to setting out the framework for ESG rating providers, as defined therein, the ESG Ratings Regulation also amends article 13(3) of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on Sustainability Related Disclosures in the Financial Services Sector (the “SFDR”).

Pursuant to this amendment, investment fund managers (“IFMs”) and investment advisers in scope of SFDR issuing and disclosing to third-parties an ESG Rating, as defined in the ESG Ratings Regulation, as part of their marketing communications (it should be noted therefore that the prospectus (including the SFDR pre-contractual disclosures) and the KID are not in scope), shall include on their website the same information that shall be provided under point 1 of annex 3 of the ESG Ratings Regulation. Marketing communications should include a link to the website where such information is made available. Firms should therefore carefully review all marketing documents to ascertain whether they may be in scope of the new article 13(3) SFDR requirements.

In its communiqué dated 1 July 2026, the CSSF reminds financial market participants in scope of SFDR that it supervises that it expects them to duly comply with the new rules as of 2 July 2026. 

Further, the CSSF states that it will continue to monitor the regulatory developments at EU level on SFDR and will “adopt a proportionate approach in its supervisory practices, ensuring that both the scope and intensity of supervisory actions take into consideration the remaining uncertainties and potential evolution of the regulatory landscape” which we hope will mean that the CSSF will take a pragmatic approach, both in terms of ongoing ESG supervision and its on and off-site inspections, in light of the upcoming changes to the SFDR rules under SFDR 2.0.