PwC Survey Shows Demand for Simpler Sustainable Finance Rules

On Tuesday 10 March 2026, PwC Luxembourg published its sustainability-related disclosures (SFDR) European Survey, revealing that Europe’s asset managers are asking for simpler, clearer rules as sustainable finance regulation enters a new phase.

Based on responses from 53 management companies across Europe, representing around €3.6 trillion in assets under management, the report highlighted how firms are adapting to the proposed SFDR 2.0 framework.

PwC Luxembourg shared five key findings of the survey, including clearer categories over complex disclosures. Asset managers say the current SFDR rules are too complex and unclear, and that they want simpler and clearer classifications.

The data shows that the new guidelines from the European Securities and Markets Authority (ESMA) on fund names have had a significant impact. According to the survey, 68% of firms reviewed part of their product range, more than half updated fund names and 22% adjusted investment strategies to ensure alignment. Sustainability terms used in fund names must now be supported by measurable evidence and this link is expected to become even stronger under the proposed SFDR 2.0 framework.

PwC also pointed out that asset managers currently use a mix of tools to assess whether investments contribute to environmental or social goals, including sustainability indicators, Sustainable Development Goals (SDG) metrics, European Union (EU) Taxonomy alignment and Environmental, Social and Governance (ESG) ratings.

Under SFDR 2.0, firms will need to clearly explain and justify their methods to ensure stronger transparency and traceability, PwC noted.

According to the survey, more than 80% of Article 8 funds promote both environmental and social characteristics. However, the proposed framework will require clearer definitions of whether products focus on environmental goals, social goals or both.

PwC Luxembourg also noted that sustainability data is becoming increasingly complex. The survey found that 86% of firms use multiple ESG data providers while nearly half rely on four or more.

The new rules will require firms to explain where their data comes from and how it supports sustainability claims, especially in sensitive areas such as defence-related investments.

Kenny Panjanaden, PwC Luxembourg Partner, Asset Management, ESG & Sustainable Finance, stated: “Fund managers face a significant challenge over the coming years as they navigate the transition to SFDR 2.0. They must strike a delicate balance between ensuring they continue to meet their original binding commitments under the current framework, while simultaneously preparing for the upcoming changes ahead.”

Geoffroy Marcassoli, PwC Luxembourg Partner, EMEA ESG Asset & Wealth Management Leader, continued: “Fund Managers would therefore be well advised to begin reviewing their product ranges early, assessing how existing strategies align with the proposed classifications and identifying potential gaps. Early planning, strong internal governance and clear communication with investors will be essential to ensure a smooth transition and avoid last-minute adjustments and the unnecessary scramble that may create operational and managerial challenges”.

PwC underlined that the survey shows sustainable finance is moving beyond disclosure towards clearer product definitions, stronger evidence requirements and better data governance, with early alignment to the upcoming SFDR 2.0 framework expected to help asset managers maintain credibility, reduce compliance risk and remain competitive in a market demanding greater clarity.