The Sustainable Banking Coalition welcomes the European Commission’s initiative to revise the Sustainable Finance Disclosure Regulation (SFDR) as a critical opportunity to strengthen Europe’s sustainable finance framework.

The proposed (i) clarification of three product categories, (ii) retention of product-level Principal Adverse Impact (PAI) disclosures, and (iii) exclusion of companies expanding fossil-fuel activities from the sustainable and transition categories are steps in the right direction. We believe that several areas can be further enhanced to ensure investors can distinguish between marketing language and genuine sustainability.

A revised SFDR can reward authenticity and impact, providing consumers with confidence and enabling ESG impact-focused financial institutions to compete on a level playing field. To achieve this, the Coalition believes that following priorities must be addressed:

• An improved and clarified sustainable investment quotawith a transparent and consistent methodology.
• Comparability across all financial products through a harmonised baseline of mandatory PAI indicators and clear disclosures and disclaimers for non-categorised products.
• A trustworthy ESG basics category through stronger exclusions of fossil fuel activities.

Please find more details in the position paper from January 2026.