Why include Structured Investment Products in SFDR?

Despite strong retail investors’ appetite, ESG SIPs are not fully recognized by the EU Sustainable Finance Regulatory framework.
However, with over EUR 300 bn of annual issuance, SIPs have become a fixture in advised retail investment solutions.
SIPs allow investors’ risk profiles to be tailored to their risk appetite (e.g. through capital protection), enhancing their participation in the
equity and credit markets while controlling their risk exposure.
ESG SIPs are fully sustainable products. Through their bond and their option components, they contribute positively to the companies’ cost
of capital , allowing to re-direct savings to more virtuous companies and sectors.
ESG SIPs are not leveraged products nor derivatives, they are securities issued by banks as a bond (including environmental or social
bond) that offer capital protection and exposure to ESG assets.
ESG SIPs’ sustainability features are measurable. The ESG assessment is made at the issuer and underlying asset level (bond and
performance components).
The current SFDR regime creates an unfair level playing field between ESG investment products, to the detriment of SIPS in contrast to
the other products that are currently recognized under SFDR.
Including SIPs in SFDR would harmonize the currently fragmented and gold-plated EU 27 regimes and bring coherence to the EU
Sustainable Regulations*, as recommended by the Draghi report.
It would also foster capital allocation towards a more sustainable economy.

Updated version : 12 December 2025