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As part of the European Union (EU) Action Plan on Sustainable Finance, the Sustainability Financial Disclosure Regulations (SFDR) provide standards to help asset managers and financial market participants (FMPs) publicly disclose the impact of Environmental, Social, and Governance (ESG) or sustainability factors on their investments and financial products. 

To help increase the transparency of the sustainability-related risk and impact of your financial portfolio, you can supplement your workspace with additional templates to prepare SFDR-ready reporting. These templates include:

• A pre-built Sustainability Program, with metrics based on all SFDR annex indicators that apply to your portfolio and a custom dimension to enable data collection based on assets or Article 8 or 9 financial products
• A Data Collection spreadsheet for Annex 1 indicators, with a separate sheet for each financial product

  Tip: For Article 8 and 9 financial products, collect responses through Workiva Tasks. Workspace members can also collect values for Annex 1 indicators through the streamlined Workiva Tasks instead the spreadsheet.

• A Factbook spreadsheet and sample report document based on SFDR Annex 1 indicators
• Additional Factbook spreadsheets for Article 8 and Article 9 financial products, as applicable
• A sample report for each product, based on its applicable annex

SFDR annexes

The SFDR include annexes with indicators for:

• Principle Adverse Impacts (PAI), or the negative effects of investments on sustainability factors, including human rights and anti-corruption factors

  Note: Article 4 of the SFDR requires FMPs with at least 500 employees to publish a PAI statement for the financial year on their website.

• Financial products referred to in Article 8 of the SFDR, which promote investments with positive impacts — such as those that consider ratings and foster sustainability factors
• Financial products referred to in Article 9 of the SFDR, which target sustainable investments and economic activities that contribute to objectives, with benchmarks to measure each fund's achievement

Your supplemental SFDR templates support indicators from Annex 1 and additional annexes applicable to your portfolio's financial products:

Tip: For Article 8 products, the Factbook includes Annexes 2 and 4; for Article 9, Annexes 3 and 5.

Step 1. Customize the Asset Listing dimension

Your Program for SFDR includes a custom Asset Listing dimension to help enable the collection of multiple values for the same metric, based on your portfolio of financial products. From Sustainability Program , a Workspace Owner can click Dimensions to update this dimension to better represent your portfolio.

For example, when you update the dimension, you can:

• Rename default values to reflect your financial products.
• Add new values for additional products in your portfolio.

Tip: Workspace Owners should periodically update the Asset Listing dimension to reflect changes to your portfolio, such as to add values for new products or archive values based on divestments. For more information, refer to Manage dimensions for metrics in Sustainability Program.

Step 2. Collect Program metric values

By default, your Program also includes metrics based on all of your applicable annexes' indicators. From these metrics, you can collect the values to disclose for your portfolio's impacts and products. 

To collect a metric's values from Sustainability Program :

1. From the Configure metric panel, set up the metric's data collection, such as the type of values to collect, and how often. To collect multiple values for a metric, such as based on your financial products or the SFDR annexes, select the dimension in Row.
   
2. In Metric details, add context around the metric and its values:
   • In Related Explorer content, add references to content in Sustainability Explorer that the metric aligns with, such as guidance from Task Force on Climate-related Financial Disclosures (TCFD).
   • In Reference attachments, upload files with additional context, such as a PDF of the SFDR annex as downloaded from the EU.
3. Assign workspace members to prepare and approve the metric's value or — if the Product dimension is applied — each product's value.
4. In Metric value, enter the value to disclose, or set up its collection through Workiva Tasks or a connected source, such as the Data collection spreadsheet for Annex 1 indicators. 
5. To notify assigned workspace members to begin data collection, click Send tasks.

For more information, refer to Collect metric values in Sustainability Program. 

Step 3. Disclose values in sustainability reports

The SFDR templates include multiple Factbook spreadsheets, based on:

• Annex 1 indicators
• Article 8 annexes, if applicable
• Article 9 annexes, if applicable

Each product also has a corresponding sample report template, with examples of how to disclose its values for the SFDR. With these files, you can curate values from Sustainability Program and include them in your reporting outputs. 

Note: The sample SFDR reports are only examples, which you can customize or refer to as you create reporting outputs. For example, in Documents or Presentations, you can create highly-designed reports that include your corporate branding and style in addition to the disclosures required for the SFDR.

To use a Factbook spreadsheet as a source for a reporting output:

1. From the spreadsheet's Connections panel, click Refresh to get the latest values from Sustainability Program.
   
2. To disclose a value, create a source link from the spreadsheet to the destination reporting output.
3. To update reporting outputs with their linked values, click Publish.