This document provides a summary for policymakers of the implementation challenges and recommendations identified through IIGCC's mapping of Net Zero Investment Framework (NZIF) to the UK's Sustainability Disclosure Requirements (SDR) and the EU's Sustainable Finance Disclosure Regulation (SFDR), including the Commission's November 2025 proposals to revise the latter.
Across both regimes, common threads emerge: the need for greater clarity on how alignment and credibility are assessed, better accommodation of asset classes beyond listed equity and corporate fixed income, appropriate recognition of stewardship and engagement, workable treatment of index-based strategies, and closer interoperability between the UK and EU frameworks.
In each case, NZIF's asset alignment methodology and asset-class-specific criteria can provide a practical, transparent reference point to support consistent implementation.
This document is part of a suite of guidance tools developed by IIGCC to support investors seeking to develop net zero-focused products under regulatory frameworks – UK SDR and EU SFDR– with reference to the NZIF.
The guidance is comprised of five separate documents that can be read in conjunction or on a standalone basis:
- An overview of the guidance suite and the labelled fund universe in the EU and UK;
- An overview of the intersection between NZIF and the UK SDR;
- An overview of the intersection between NZIF and the EU SFDR;
- A summary for policymakers;
- NZIF Mapping Methodology: UK SDR and SFDR
🔒 The full guidance suite is available exclusively to IIGCC members, while the Summary for Policymakers is publicly available to all.