November 2025 Newsletter

Top sustainability stories for November 2025.

SFDR 2.0 released: new fund categories and reporting simplification

The EU Commission has released its final proposal for SFDR 2.0, introducing major changes to sustainable finance disclosure. Existing Article 8 and 9 classifications will be replaced by new product categories: Article 7 (Transition), Article 8 (ESG Basics), and Article 9 (Sustainable Features), each requiring 70% alignment and mandatory exclusions. Entity-level disclosures are removed, but product-level PAI reporting remains for Articles 7 and 9. The definition of “sustainable investments” is scrapped, and disclosure templates simplified. No opt-out for professional investor funds and no grandfathering apply. Implementation will follow an 18-month transition after adoption, expected in 2027/2028. Read more here.

PRI’s releases 2026 Reporting Framework

The PRI has launched a streamlined reporting framework for 2026, reducing duplication and consolidating questions into around 40 indicators. Reporting is now mandatory for all signatories, ending the option for partial reporting. Asset class-specific modules have been removed, with content integrated into broader areas such as governance, investment analysis, decision-making, and stewardship. New priorities include mandatory human rights due diligence, nature-related risk assessment, and collaboration. While leaner, the framework still references 55 previous indicators and adds six new ones. Signatories will receive transparency and assessment reports as before, but early preparation is advised due to structural changes. Read more here.

Join Danesmead Advisory & AIMA for a practical, insight-packed webinar that will walk you through everything you need to know to prepare. Register here: https://www.aima.org/event/how-to-prepare-for-2026-pri-reporting-new-and-nandatory.html?dm_i=2LZ3,2…

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AIMA Fund Manager Briefing: How to Prepare for 2026 PRI Reporting: New and Mandatory

FRC releases finalised UK Stewardship Code 2026

Six months after its launch in June, the UK Stewardship Code 2026 has undergone further refinements, incorporating stakeholder feedback from over 1,500 respondents to a consultation. The final version includes an updated definition of stewardship and reduced reporting obligations for signatories, as well as new guidance for non-equity classes, and stronger requirements on signatories to provide evidence to support stewardship claims. The new Code comes into effect on 1st January 2026, with asset managers and service providers expected to apply by 30th April 2026, and asset owners by 31st May 2026. Read more here.

EU Parliament agrees major scope reductions for CSRD and CSDDD

The European Parliament (EP) has voted to significantly scale back the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). The EP proposes that CSRD should apply only to companies with over 1,750 employees and €450m turnover, removing over 90% of previously in-scope firms. Sector-specific reporting would also become voluntary under the proposed approach, and qualitative detail requirements would be reduced. CSDDD thresholds would rise to 5,000 employees and €1.5bn turnover, eliminating transition plan obligations and shifting liability to national level. Trilogue negotiations on the Directive begin next week, aiming for agreement by the end of 2025, though differing mandates and national transposition mean full implementation will take longer. Read more here.

Investors express support for DEI in opposition to Trump

Despite political backlash in the U.S., including rhetoric from President Trump, European investors remain committed to diversity, equity, and inclusion (DEI) as a core business priority. The FT reports that while DEI faces growing resistance in some regions, European firms continue to integrate inclusive practices, driven by regulatory frameworks and strong evidence linking DEI to financial performance and innovation. Investors view DEI not as a “woke” agenda but as essential for resilience and competitiveness. Scaling back risks regulatory scrutiny and reputational damage, reinforcing Europe’s leadership in advancing workplace equality and stakeholder value.

Recent EDCI updates for 2026

EDCI has announced key changes for the upcoming reporting cycle due in April 2026. A new tiered pricing model introduces membership fees ranging from $3k–$36k, based on AUM, geography, and membership level. Two tiers are available: “Essential”: offering core features like data validation, benchmarking, and annual insights; and “Analytics”: which adds advanced visualisation and customizable analysis tools. Additionally, EDCI has introduced an optional Cybersecurity Testing metric, addressing growing data governance concerns. This metric asks GPs to report practices such as vulnerability scans, penetration testing, and secure software development processes, reinforcing EDCI’s commitment to robust risk management.

If you’d like to know more or discuss any of these topics please get in touch.