SFDR stands for Sustainable Finance Disclosure Regulation, an EU regulation introduced in 2021. It isn't a label or seal of approval, but a disclosure requirement. It requires banks and fund providers to disclose how a financial product considers sustainability. Specifically: providers must disclose whether and how it considers environmental or social criteria, invests in sustainable investments, or pursues a sustainable investment objective.
SFDR has three categories:
Article 6: No specific sustainability focus
Article 8: The investment product actively promotes environmental and social characteristics and also invests in sustainable investments. Sustainability is part of the offering, but not the main purpose
Article 9: Sustainability is the stated investment objective
The goal is to make it easier for investors to distinguish between different sustainable investment products and compare them.
The Tomorrow Fund is classified as Article 9, the Inyova Impact ETF is classified as Article 8.