Review of our "SDR in Practice" Event

In-depth Analysis of SDR Funds: Key Insights from WeeFin's Study

At the "SDR In Practice" event, Marion, co-founder & Chief International Officer, presented her comprehensive analysis of the UK's Sustainability Disclosure Requirements (SDR). This regulation, which came into effect in April 2025, draws inspiration from the European SFDR.

Methodology and Representative Sample

The study examined 30 funds from 30 different asset managers, representing £17 billion in assets under management. To conduct this thorough analysis, our experts based their assessment on the following documents:

• CFD documents
• Pre-contractual documents
• Engagement policies
• Exclusion policies
• Fund-level CDC reports

Key Trends and Notable Observations

Internal vs External Methodologies

Half of the analyzed funds use internal methodologies, which we consider good practice provided these methodologies are clearly explained. The other half relies on recognized external standards such as the SDGs or EU taxonomy.

Objectives and Targets

Most "improvers" funds have set objectives for 2050, but we recommend establishing measurable intermediate objectives to ensure effective progress monitoring.

Distribution of Mixed Goals

Contrary to the FCA's expectations that one-third of funds would have mixed goals, the study reveals that only 12% of funds fall into this category. Fidelity International stands out with a significant number of mixed-goal funds.

Predominance of Environmental Themes

The analysis highlights a strong focus on environmental themes:

• 20 out of 23 funds concentrate on environmental objectives
• 50% of funds have carbon emission reduction targets
• Only one fund is specifically dedicated to social themes

Data Transparency and Reporting

The study highlights significant gaps in transparency:

• Some funds do not disclose any quantitative data in their CFD documents
• Data coverage and sources are rarely mentioned
• Information on resources and governance is generally insufficient

Strengths and Areas for Improvement

Market Best Practices

The study reveals several areas where the UK market demonstrates advanced maturity:

• Stewardship: The UK distinguishes itself through rigorous application of the stewardship code, with well-structured engagement and voting policies.
• Exclusions: Exclusion practices are generally well-defined and applied.
• Naming: Compliance with naming rules is excellent, demonstrating a good understanding of regulatory requirements.

Opportunities for Improvement

Several areas present significant potential for improvement:

• Coverage thresholds: While all funds meet the regulatory threshold of 70% coverage for their sustainable objectives, only one-third of funds go beyond this, reaching between 90% and 100% coverage. Marion recommends targeting these higher levels, similar to the French SLI label requirements which impose a 90% threshold.
• Data quality: Improving coverage requires better data quality, particularly through more effective matching policies or diversification of data sources.
• Impact measurements: Of the many impact funds analyzed, only two had concrete impact measures, suggesting a need for more advanced methodologies in this area.

Conclusion and Outlook

To learn more about our study, download the detailed table presenting the KPIs identified for each labeled fund by submitting our formu, as well as specific recommendations for improving practices, by filling out the form below.

An update of this analysis is planned for later in the year, incorporating newly labeled funds and allowing observation of market evolution.

In a context where European (SFDR 2.0) and British (SDR) regulations are evolving in parallel, this study constitutes a valuable resource for asset managers wishing to optimize their ESG practices and anticipate future regulatory requirements.

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