Smeets is also the Scientific Director of RCSII (Research Centre for Sustainable Investments and Insurance), a joint initiative of the University of Amsterdam and insurer a.s.r. The team’s research was recently featured in a Financial Times article. With climate change reshaping finance, this media coverage reflects the centre’s mission to help policymakers and financial professionals build a resilient, sustainable financial system and turn evidence into impact.

No clear shift towards greener funds

The researchers studied the EU’s Sustainable Finance Disclosure Regulation (SFDR), introduced in 2021 to encourage sustainable investment and reduce greenwashing. Their analysis shows that the rules did not lead to more investment in ‘green’ funds, nor to more environmentally friendly portfolios.
They also found no meaningful changes in key indicators such as carbon emissions, environmental ratings or carbon risk scores after the regulation came into force.

Labels are too complex

According to the study, many investors struggle to understand the SFDR categories. This makes it less likely that the labels influence investment decisions. High compliance costs and complex reporting requirements may also limit the regulation’s effectiveness.

Input for policy debate

The findings add to the debate on whether the financial sector can play a meaningful role in tackling climate change. They are published as the EU considers revising the SFDR to make it simpler and more useful for investors.