Amidst the growing chasm between the E.U.’s embrace of sustainable investing and the strong, politically motivated pushback in the U.S., the number of funds launched that satisfy the requirement of the E.U. Sustainable Finance Disclosure Regulations (SFDR) has continued to grow each year. That growth is happening amidst fund managers’ efforts to bridge the geographic divide, while also preparing for a slew of E.U. regulatory efforts to streamline and simplify the requirements associated with offering sustainability-focused funds. Against that backdrop, Maples Group recently released its third SFDR Impact Analysis (Report) to provide managers with practical insights on the current state of sustainable investing in Europe and how the SFDR is likely to evolve in the future. The analysis focused on the two largest fund domiciles in Europe – Luxembourg and Ireland – and reviewed more than 27,000 active funds in those jurisdictions. This article summarizes the key takeaways from the Report for private fund managers. For coverage of Maples Group’s 2024 analysis, see “Rise of SFDR‑Compliant Funds Is Effectively Shifting Private Assets to Support European Net Zero Goals” (Sep. 19, 2024).