Introduced in November 2025 as a proposed set of amendments to the Sustainable Finance Disclosure Regulation, SFDR 2.0 aims to simplify and clarify sustainability disclosures by financial product manufacturers and managers. It removes entity-level principal adverse impact disclosures (PAIs), and revises product categories. Products must have a portfolio alignment of at least 70% with sustainability criteria.
Liechtenstein and Swiss financial institutions face new compliance requirements and have opportunities to innovate and enhance transparency, as well as maintaining access to EU markets in the evolving sustainable finance landscape.