Transition Products, Retail Investor Preferences and the Reform of the SFDR
October 21, 2025
Empirical insights from the ClimLabels project on credible product design, investor demand, and policy alignment
Why credible transition finance matters now. To deliver the EU Green Deal, restore investor confidence amid product confusion and maintain Europe’s market competitiveness, credible transition finance is essential. Anchored in German-funded, EU-relevant evidence, credible transition finance offers a practical route to delivering the Green Deal, rebuilding investor trust and strengthening Europe’s sustainable finance leadership. While the Sustainable Finance Disclosure Regulation (SFDR) is under review, evidence from the ClimLabels projects sheds light on both the supply and demand sides. On the supply side, the project analyses how transition products can be credibly designed while remaining financially competitive. On the demand side, it gathers empirical evidence on retail investors’ preferences, willingness to pay, and understanding of different SFDR product categories.