Essentially, the point of the SFDR (Sustainable Finance Disclosure Regulation) is to help people make better investment decisions. In the SFDR, you will find three classifications for investment products: Articles 6, 8 and 9. But do you know what do these articles mean?

💡 Article 6 funds don’t meet the sustainability criteria to be classified higher. 👉 They aren’t very good or relevant.

💡 Article 8 funds promote environmental and social characteristics, but sustainability is not their core goal. 👉 They are okay but could be better.

💡 Article 9 is the highest-ranking and means the fund sets sustainable investing as its objective. 👉 That’s good!

At Grünfin, we entirely focus on sustainability. Our climate-themed portfolio, for example, consists of Article 9 funds exclusively. You can read more about how we consider ESG and other criteria when selecting the ETFs in our investments in our blog post.

Remember: When you invest in a fund, the fund in turn usually invests in individual companies. Therefore, for an ETF to be highly rated under this regulation, it must invest in highly-rated companies.

The more money flows into sustainable funds, the more money flows into sustainable companies.

Read more:

Does sustainable investing make financial sense?

What are the benefits of long-term investing?

Why does Grünfin offer to invest in ETF's rather than individual stocks?

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