SFDR software and reporting tools: how to choose (2026)
What SFDR reporting software does for asset managers and advisers, how the proposed SFDR overhaul affects the choice, and what to ask vendors before you buy.
The Sustainable Finance Disclosure Regulation (SFDR) sets how financial firms disclose sustainability risks and the sustainability claims of their funds. SFDR software helps them gather the data, classify products, populate the disclosure templates and keep the evidence. It is relevant to asset managers, advisers, insurers and others who market financial products in the EU, not to ordinary companies. See SFDR in the glossary and the full list of SFDR providers.
What applies today
The current Regulation (EU) 2019/2088 continues to apply. In outline it requires firms to publish sustainability-risk policies, to report on principal adverse impacts at entity level (mandatory above a size threshold, otherwise comply-or-explain), and to give pre-contractual, website and periodic disclosures for products that promote environmental or social characteristics (Article 8) or have a sustainable investment objective (Article 9). Detailed templates sit in delegated legislation. Check the consolidated text on EUR-Lex.
What is changing
On 20 November 2025 the Commission proposed a major revision (COM(2025) 841). As proposed it would replace the Article 8 and 9 labels with three voluntary product categories, called Sustainable, Transition and ESG basics, each needing at least 70% of the portfolio to follow the category strategy. It would delete the "sustainable investment" definition, remove entity-level principal adverse impact disclosures, shorten product disclosures, and restrict ESG claims in names and marketing to categorised products.
Nothing has been adopted. The Council agreed a negotiating position in mid-2026 and the Parliament adopted its position in autumn 2026, and the two institutions are negotiating with the Commission. Law-firm commentary suggests that, if agreement is reached by the end of 2026, application could start from late 2028, but no date is fixed. Positions differ between the institutions on points such as the Taxonomy-alignment thresholds, so treat the proposal as a direction, not a rulebook.
What SFDR software should do
| Area | What to look for |
|---|---|
| Data sourcing | Investee company data from vendors and direct reporting, with source, date and quality flags |
| Principal adverse impacts | The indicator set, calculation methods, coverage and estimates, with visible workings |
| Product classification | Article 6, 8 and 9 today, with a path to the proposed categories if they are adopted |
| Taxonomy alignment | Calculation of the share of aligned investments and supporting evidence |
| Templates | Pre-contractual and periodic disclosures generated from the data and kept consistent |
| Website disclosures | Version control and publication workflow |
| Audit trail | Who changed what, with evidence attached |
| Links to CSRD data | Ability to use investee ESRS data as it becomes available |
Questions to ask vendors
- How do you handle the proposed new categories, and what is the plan if they change?
- Which data providers do you use, and what happens to missing data?
- Can we see how each indicator is calculated and override or annotate figures?
- How are template changes delivered, and at what cost?
- Can the output be reviewed by compliance and legal before publication?
- What are the total costs over three years, including data?
Use the ESG software RFP checklist and how to run a software selection.
Shortlist: sustainable finance providers
Carbon4 Finance
Paris-based provider of climate transition, physical risk and biodiversity analytics and regulatory reporting data for financial institutions.
Clarity AI
Sustainability data and analytics for investors and companies. Announced a merger with Glass Lewis in 2026.
Connect Earth
Sustainability data and reporting software for financial institutions.
ISS STOXX (ISS ESG)
ESG ratings, data and solutions for investors, including SFDR data.
Impact Cubed
London investment solutions and sustainability data provider offering ESG factor data, custom indices and regulatory reporting support.
Seneca ESG
Sustainability platform and advisory with offices in Singapore and Taipei covering carbon accounting and ESG compliance.
Sustainability Works
Irish sustainability consultancy covering strategy, ESG reporting, sustainable finance advice and staff training.
Greenomy
EU Taxonomy, SFDR and CSRD reporting software. Acquired by Position Green in 2025.
Ordered by verified reviews and relevance. Listings are never ranked by payment. See all 13 providers
Consider ESG data and ratings platforms for investee data and legal advisers for interpretation. A free shortlist can narrow the field.
Official sources
- Regulation (EU) 2019/2088 (SFDR), EUR-Lex
- Proposal COM(2025) 841, EUR-Lex
- European Parliament: SFDR revision progress
This guide is general information, not legal, tax or investment advice. Rules change; check the official sources and talk to an adviser before you rely on it.
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