Myth busting 2: Corporate Social Responsibility Directive (CSRD) vs Sustainable Finance Disclosure Regulation (SFDR) ...Middle East

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Myth busting 2: Corporate Social Responsibility Directive (CSRD) vs Sustainable Finance Disclosure Regulation (SFDR)
There’s a common misconception that the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR) are interchangeable or always need to be discussed together. While both regulations aim to enhance transparency and sustainability in business practices, they serve distinct purposes and target different audiences. The CSRD focuses on corporate sustainability reporting, applying to a broad range of companies across sectors. On the other hand, the SFDR is specific to financial market participants and advisers (Figure 1), ensuring transparency in how sustainability risks are considered in financial products. Although they complement each other in

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