The European Sustainable Finance Disclosure Regulation (SFDR), officially known as Regulation EU 2019/2088, has been in effect for nearly two years. Now, the European Commission is conducting a comprehensive assessment of the SFDR framework and launched a public consultation on the implementation of the SFDR on September 14, 2023. Many funds that were previously categorized as “dark green funds” under Article 9 of the SFDR (Article 9 Funds) have undergone reclassifications and are now classified as “light green funds” under Article 8 of the SFDR (Article 8 Funds). This guest article by David Jansen and Claudius Straub at Willkie Farr & Gallagher LLP discusses the evolving regulatory landscape of sustainable investments in Europe under the SFDR, providing guidance to fund managers considering setting up an Article 8 or 9 Fund in light of the latest regulatory developments. It also touches upon the emerging environmental, social and governance disclosure framework in the U.S. and its differences from the SFDR. See our two-part series on E.U. sustainable finance initiatives: “Preparing to Apply the Taxonomy Regulation and Other Proposed ESG Regulations” (Oct. 27, 2020); and “Exploring the Different Application Levels of SFDR Based on a Firm’s ESG Practices” (Nov. 3, 2020).