The Sustainable Finance Disclosure Regulation (SFDR) by the European Union points to a dilemma that financial market participants (FMPs) might also face in the U.S. If FMPs, who primarily focus on small and mid-sized enterprises (SMEs), have to report on the sustainability performance of the companies they work with, they might not be able to gather this information, as most SMEs are not required to report on their sustainability performance, yet. Broadening the scope of enterprises required to report on their non-financial information might be a solution.
New EU Sustainability Reporting Rules Ask EU and U.S. Companies for More Data on Operations
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