UK - Same same but different
The fundamental difference between the two is that SDR is a labelling regime whereas SFDR is a disclosure regime. A labelling regime entails requiring to adhere to clear, defined rules in order to adopt that label. A disclosure regime means that if you use any sustainability-related vocabulary, then you have to demonstrate how you have been sustainable.
While the SDR’s consultation phase ended on 25 January 2023 and is expected to come into effect at the end of June, the SFDR has been in force since March 2020, with Level 2 having come into effect from January 2023.
Scope is another key divergence.