These are the 10 best software tools to comply with the SFDR regulation
Talking about sustainable financial reporting: the role of SFDR
How SFDR software helps meet disclosure obligations
5 Advantages of implementing SFDR software
Turning SFDR compliance into a competitive advantage
Dcycle: the ESG solution that simplifies SFDR compliance
Frequently Asked Questions (FAQs)
These are the 10 best software tools to comply with the SFDR regulation in 2025
Complying with the SFDR regulation requires much more than filling in templates or following a standard model. It involves collecting, organizing, and validating large volumes of ESG data with rigor and consistency across different internal sources.
Each indicator, each metric, and every control point must be aligned with the technical requirements of the RTS and the PAI indicators, something that is practically impossible to achieve manually.
That is why more and more companies are turning to specialized software to comply with the SFDR regulation, capable of automating tasks, consolidating information, and ensuring traceability at every stage.
The goal is not only to meet the regulation, but also to strengthen competitiveness, integrating sustainability into business processes in a practical and measurable way.
Throughout this article, we will see how this type of software works, which requirements it covers, and what benefits it brings when sustainability becomes a strategic lever within the company.
Dcycle is an ESG management SaaS solution that helps companies collect, normalize, and distribute their sustainability data to comply with any standard, including the SFDR regulation.
Its approach is clear: automate data capture, traceability, and reporting without relying on consultants or external auditors.
We work so that organizations can map PAI indicators, prepare reports aligned with the RTS, and reuse the same data for other frameworks such as CSRD, EU Taxonomy, EINF, SBTi, or ISOs.
In this way, we avoid duplication and simplify ESG information management across the company.
Our technology allows sustainability to become a strategic asset, eliminating manual tasks and improving data quality. This results in faster decisions, more efficient processes, and guaranteed regulatory compliance.
Main advantages:
Ultimately, Dcycle is not a consultancy, but a solution for companies that want to manage sustainability with the same precision and efficiency as any other critical business process.
GreenMetrics focuses on providing simplified ESG data management for financial and sustainability teams that need to comply with the SFDR regulation without technical complexity.
Its proposal combines reporting automation, integration with internal systems, and total control over PAI indicators.
The software enables users to generate preconfigured reports according to the RTS, connect different information sources, and maintain constant traceability of data. This way, teams can focus on analyzing results instead of processing files.
Main advantages:
Climatica is a tool designed to automate the collection and analysis of ESG data, helping companies build consistent and verifiable reports under the SFDR framework.
Its modular architecture allows the system to adapt to different reporting frameworks, reducing time and errors.
With a flexible structure, it links financial, operational, and environmental data to meet SFDR requirements without relying on spreadsheets or manual processes.
Main advantages:
SustainIQ is designed for teams seeking a comprehensive view of their ESG data and the ability to transform it into reports compatible with SFDR and other European frameworks.
It focuses on providing a visual and intuitive experience, ideal for companies that prioritize efficiency in management and clarity in reporting.
It allows automation of complex calculations, linking indicators with internal objectives, and maintaining a digital record of all evidence required by regulators.
Main advantages:
ESGFlow offers a comprehensive approach to ESG data management, connecting information from multiple departments into a single platform.
Its main goal is to ensure coherence and consistency in SFDR reports, reducing risks and simplifying data governance.
In addition to covering SFDR obligations, ESGFlow allows the same data to be reused in processes like CSRD, EU Taxonomy, or ISOs, avoiding duplication and ensuring a single source of truth for corporate sustainability.
Main advantages:
With DataESG Pro, we find a platform that centralizes and standardizes ESG data to comply with SFDR rigorously.
It allows us to connect internal sources, validate indicators, and maintain complete traceability without relying on manual processes.
We use RTS-aligned templates to prepare pre-contractual and periodic reports, mapping PAI with quality controls. Thus, we can reuse the same database across other frameworks such as CSRD and the EU Taxonomy.
Main advantages:
With CarbonTrack Suite, we cover the automation of calculations and consolidation of key indicators for SFDR.
It helps harmonize factors, units, and boundaries, reducing errors and closing times.
We can link internal objectives with mandatory metrics and activate early alerts when information is missing. This gives cross-departmental visibility for finance and sustainability teams.
In addition to automating emissions tracking, companies are increasingly incorporating Carbon Footprint calculations into their ESG reporting processes. This allows them to quantify and monitor the environmental impact of operations more accurately, supporting SFDR-aligned sustainability objectives.
Main advantages:
RegFin ESG helps us operationalize SFDR with guided workflows that simplify PAI, RTS, and documentation management.
We can prioritize tasks, assign responsibilities, and record verifiable evidence at every step.
Its use-case-driven approach allows data reuse for CSRD, EINF, or ISOs without duplication, maintaining data consistency throughout the reporting cycle.
Main advantages:
With MetricAtlas, we gain methodological consistency and standardization across the entire ESG pipeline.
It enables the connection of multiple data sources, mapping them to SFDR data points, and identifying gaps quickly.
It is useful for cross-referencing financial and non-financial data, aligning reports with what investors and supervisors expect.
Main advantages:
With Comply360 ESG, we structure the entire SFDR compliance cycle from start to finish. We define calendars, responsibilities, and deliverables, and monitor progress and quality in real time.
The reuse of content and orchestration of evidence allows us to respond to internal reviews efficiently and without rework.
Main advantages:
The SFDR (Sustainable Finance Disclosure Regulation) is the European regulation that defines how financial entities and advisers must disclose information about sustainability.
In practice, it determines what information must be published, where, and with what level of detail, ensuring transparency for investors and regulators.
Its main goal is to standardize ESG information across the financial market, allowing for comparison of products, strategies, and impacts.
Entities must disclose sustainability risks, objectives, and Principal Adverse Impacts (PAI) both at the organization level and the product level.
Over recent years, SFDR has become a central piece of the European regulatory framework, together with the CSRD and the EU Taxonomy.
It is no longer just about publishing reports, but about demonstrating traceability, coherence, and data quality—elements essential for meeting investor and supervisory expectations.
In this context, companies in the financial sector need solid ESG data management processes, capable of connecting internal sources, normalizing metrics, and preparing reports using RTS templates.
If data is not properly structured, compliance becomes slow, manual, and error-prone.
That is why more organizations are adopting automated ESG solutions that allow them to centralize all information in one environment, ensuring a common database for SFDR, CSRD, or Taxonomy.
This reduces duplication and facilitates both internal and external review.
SFDR applies to all financial market participants who manage or distribute investment products within the European Union.
This includes asset managers, funds, insurers, and financial advisers offering products with sustainability components or that must report how they integrate these factors in their decisions.
Entities must disclose information at three key moments:
In each case, they must include PAI indicators, due diligence policies, sustainability objectives, and the methodology used to assess risks and impacts.
In addition, SFDR distinguishes products based on their level of ESG integration, commonly associated with Articles 6, 8, and 9.
Although not official labels, these categories are widely used to classify products and give the market a clear reference about each fund’s level of commitment and transparency.
Complying with SFDR requires data structure, automation, and traceability.
It is not enough to collect information; consistency between entity and product levels must be guaranteed, standardized methodologies applied, and auditable evidence maintained.
From our perspective, digitalizing ESG reporting is no longer optional but essential.
Automating the collection, validation, and publication of SFDR information reduces risks, improves data quality, and frees up time to focus on what truly matters: making decisions based on reliable and complete information.
In 2025, SFDR is part of a fully interconnected European regulatory framework, closely linked to the CSRD, ESRS, and the EU Taxonomy.
Its application cannot be understood without the CSRD, the ESRS, and the EU Taxonomy, since all these frameworks share data, objectives, and reporting structures.
The CSRD requires companies to collect and disclose ESG information under detailed standards, and the ESRS specify exactly how they must do it.
That information becomes the foundation upon which financial actors build their SFDR reports, especially when calculating Principal Adverse Impact indicators (PAI).
Meanwhile, the EU Taxonomy defines technical criteria that determine whether an economic activity contributes to the EU’s environmental objectives.
SFDR requires financial products to disclose how aligned their investments are with the Taxonomy, which means having accurate and up-to-date data about portfolio companies’ activities.
These frameworks are not isolated components; they form a single system of transparency and traceability for ESG data.
If data is not well structured or connected across systems, it becomes impossible to comply coherently with all regulations.
The key is to build a shared information base that allows reporting once and reusing the same data across multiple regulatory contexts.
SFDR distinguishes three levels of ESG integration through Articles 6, 8, and 9.
Although they are not official certifications, they have become a practical reference for classifying financial products according to their degree of commitment and transparency.
In all cases, SFDR demands consistency between entity-level and product-level information.
This requires a solid ESG data management system capable of ensuring traceability, accuracy, and consistency.
Without a well-designed structure, meeting the requirements of Articles 6, 8, and 9 becomes a complex, slow, and error-prone process.
The challenge for financial organizations in 2025 is no longer just to report out of obligation, but to treat ESG data as a strategic asset, using regulation as an opportunity to gain efficiency, credibility, and competitive advantage.
PAI (Principal Adverse Impacts) are the indicators that measure the negative effects of investment decisions on environmental, social, and governance factors.
In other words, they reflect how investments affect the environment and people, beyond financial performance.
Their goal is to provide transparency and traceability about how financial entities manage these impacts.
SFDR requires companies to collect, calculate, and publish these indicators both at entity and product level, following methodologies and templates defined in the RTS (Regulatory Technical Standards).
These metrics are key to ensuring comparability among financial products and demonstrating each entity’s commitment to responsible ESG risk management.
For that reason, PAIs have become one of the most technically complex pillars of SFDR, and their proper implementation demands robust systems for data management and verification.
Understanding them is not only a regulatory requirement—it is also an opportunity to structure ESG information correctly and leverage it across other frameworks like CSRD, Taxonomy, or ESRS, avoiding duplication and improving data governance efficiency.
A software solution designed for SFDR allows us to centralize all ESG information automatically and traceably.
We can connect internal sources, financial databases, and external systems to gather relevant indicators without manual processes.
This reduces errors and ensures that data is always updated and verified, which is essential when regulators demand precision and consistency between entity and product levels.
The system facilitates the integration and tracking of PAI indicators defined by SFDR, both mandatory and additional.
It helps us standardize information, apply calculation formulas, and maintain traceability of each data point back to its source.
This provides a complete and structured view of ESG impact, with the ability to demonstrate consistency and evidence in any review or audit.
SFDR requires disclosures in standardized templates according to the RTS.
With specialized software, we can generate these documents automatically from consolidated data, avoiding duplication or manual report preparation.
This ensures accurate regulatory deadlines, coherence across versions, and the ability to update reports when methodologies or indicators change.
An effective SFDR software solution does not work in isolation.
It is designed to connect with other regulatory frameworks, such as the EU Taxonomy or ESRS.
This way, we can reuse the same ESG database across different reports, guaranteeing consistency among various standards.
Such integration optimizes data governance, reduces effort, and ensures that all published information meets technical and regulatory criteria.
Automation is key to efficiently complying with SFDR.
A specialized software solution allows automation of reporting, quality checks, and inconsistency alerts.
We can define validation workflows, assign responsibilities, and document each step, ensuring full traceability and proactive ESG risk management.
This transforms regulatory compliance into a continuous, dynamic, and easily auditable process.
Overall, this type of technological solution turns SFDR management into a structured, automated, and scalable process, where ESG information becomes a strategic decision-making tool rather than an administrative burden.
Managing SFDR compliance without a dedicated tool can become a slow, fragmented, and difficult process to maintain.
The regulation demands coherence across multiple data sources, complete traceability, and a solid documentation structure.
If we try to handle everything with spreadsheets or manual workflows, the risk of errors and duplication grows exponentially.
In addition, the amount of information required by SFDR—especially the PAI indicators and RTS templates—makes it necessary to keep data and reports constantly updated.
Each methodological update or regulatory change implies redoing calculations, validating figures, and revising formats.
Without an automated system, the margin for error increases and the response time decreases.
On top of that, organizations must align data between entity level and product level, which requires coordination among financial, sustainability, and risk teams.
Without a centralized environment, data becomes scattered and traceability is lost, making both auditing and supervision more difficult.
For all these reasons, tackling SFDR without technological support not only increases operational costs but also jeopardizes the consistency and quality of reporting.
Adopting specialized SFDR software transforms regulatory compliance into a structured, efficient, and scalable process.
By centralizing ESG information and automating key tasks, organizations gain time, reliability, and control.
An SFDR platform allows us to concentrate all data from funds, portfolios, and ESG indicators in a single environment.
This facilitates connection with internal sources, financial systems, and external platforms, avoiding duplication and guaranteeing full traceability from the data origin to the final report.
With this unified structure, finance and sustainability teams can work with a single version of the truth, eliminating discrepancies between departments and reports.
The RTS templates define the exact format that reports must follow.
With the right software, we can generate pre-contractual and periodic documents automatically, using the data collected and already structured within the system.
This ensures full compliance with the structure required by the regulator, without having to manually build each report from scratch.
The system also enables automatic updates whenever the RTS change, maintaining consistency and reducing manual intervention.
By automating reporting processes, we drastically reduce operational workload and minimize human error.
Internal validations, approval workflows, and built-in coherence checks guarantee that every report is consistent and verifiable, reducing the risk of non-compliance or sanctions.
This not only optimizes time and resources but also builds trust with auditors and supervisory bodies, as every piece of information is fully traceable and supported by evidence.
SFDR goes beyond documentation. It demands coherence between declared ESG strategies and disclosed information.
A specialized software solution allows companies to align objectives, policies, and outcomes, ensuring that what is reported accurately reflects the entity’s real performance.
This alignment strengthens transparency and credibility in the market, demonstrating that sustainability is not merely a compliance exercise but an integrated business strategy.
By automating calculations, workflows, and updates, we can reduce the time spent on repetitive tasks and increase report accuracy.
This frees internal teams to focus on strategic analysis and decision-making, rather than on manual data management.
In short, implementing SFDR software allows organizations to move from a reactive approach to a proactive one, treating ESG information as a strategic asset.
Automation and traceability not only facilitate compliance but also enhance competitiveness and improve response capacity to new market and regulatory challenges.
A good SFDR solution does not just generate reports.
It should integrate, structure, and automate the entire ESG data management process.
The key lies in transforming compliance into a fluid, reliable, and reusable process applicable across multiple regulatory frameworks.
The objective is simple: collect information once and distribute it everywhere—whether for SFDR, CSRD, Taxonomy, EINF, or ISO standards.
This approach reduces errors, improves efficiency, and ensures complete traceability from start to finish.
The software must be able to connect corporate ESG data from ESRS and cross-reference it with the requirements of the EU Taxonomy.
This ensures that financial and non-financial indicators remain synchronized, and that SFDR disclosures are based on coherent, verifiable information.
Automatic connectors eliminate repetitive tasks, maintaining a live database that is always updated and aligned with evolving regulatory requirements.
A core capability is the ability to manage PAI indicators (Principal Adverse Impacts).
The system must allow mapping, calculation, and monitoring of these indicators according to technical criteria defined in the RTS.
It should also provide quality alerts, historical records, and complete traceability, so that every data point can be audited and traced to its origin during any review or internal control.
This ensures that reports are not only compliant but also technically sound and verifiable.
SFDR compliance requires reporting in standardized formats established by the European Commission.
Advanced software must be able to generate RTS templates automatically and produce XBRL files, guaranteeing that the content is compatible with official submission platforms.
This not only simplifies delivery but also ensures consistency across reports, avoiding formatting errors that could lead to regulatory observations or additional requirements.
Traceability does not apply only to data—it also applies to the process.
A good SFDR tool should include documented workflows with reviews, validations, and approvals, ensuring that each step of the reporting process is recorded and auditable.
This allows for a complete audit trail, reinforcing internal and external confidence in the quality of the ESG information disclosed.
The platform must be capable of managing products classified under Articles 6, 8, and 9, adapting requirements and templates to each level of ESG integration.
This ensures consistency between strategies and disclosures, avoiding inconsistencies between pre-contractual documents and periodic reports.
Having this flexibility makes it possible to adapt quickly to regulatory changes without having to rebuild the entire reporting system from scratch.
When ESG data management is well structured, SFDR compliance stops being a formality and becomes a strategic advantage.
Having reliable, traceable, and comparable data allows companies to demonstrate robustness, anticipate new demands, and build investor and regulator trust.
The integration between SFDR, CSRD, and the EU Taxonomy creates a clear competitive edge: less time spent, higher precision, and better analytical capabilities within the context of broader sustainable finance frameworks.
In a world where measuring ESG impact is no longer optional, technology becomes the decisive factor for maintaining competitiveness.
Those who manage their data with rigor and strategic vision will not only comply with regulations but also lead the shift toward more efficient and future-ready business management.
Adopting an SFDR platform is not only a technical decision but also an opportunity to structure ESG information across the organization in a solid, scalable way.
Proper preparation before implementation is key to making the most of the tool and ensuring a smooth, consistent, and traceable reporting process.
The first step is to understand what information you already have and in what state.
Identify which ESG and financial data are currently being collected, what is missing, and how they are being managed.
This helps detect gaps, duplications, or inconsistencies before integrating everything into the technological platform.
Having a clear view of the starting point facilitates the creation of a unified database, capable of feeding all future regulatory frameworks efficiently.
Before deploying SFDR software, it is essential to define the real scope of reporting.
It is not the same to report at the entity level as it is at the product or fund level.
Moreover, the level of requirements changes depending on whether the product falls under Article 6, 8, or 9.
Mapping this clearly from the beginning helps configure the system properly, assign responsibilities, and prioritize the most critical indicators for compliance.
Not all software on the market is ready to manage the RTS requirements of SFDR or to connect with the EU Taxonomy.
It is crucial to choose a platform capable of exporting reports in official formats, mapping economic activities according to technical criteria, and maintaining a direct link with corporate ESRS data.
This ensures that the same information can be reused across multiple regulatory frameworks, avoiding duplicated effort and improving consistency and efficiency in every submission.
A well-chosen solution should also support XBRL tagging, offer automatic updates when RTS templates change, and include validation layers to detect inconsistencies before reporting.
Ultimately, compatibility with RTS and Taxonomy is what guarantees technical accuracy and a seamless connection between financial and sustainability disclosures.
Automation is what truly transforms SFDR compliance from a manual burden into a streamlined and reliable process.
A good software solution should connect directly with internal sources, gather ESG and financial data in real time, and maintain full traceability from origin to final report.
This removes repetitive manual work, reduces human error, and ensures that every PAI indicator or sustainability metric is backed by verifiable and up-to-date evidence.
Automated systems also make it easier to manage version control, keep records of every update, and provide auditors with transparent documentation at any time.
By automating data flows, companies can focus their resources on analysis and strategic improvement, instead of spending countless hours on data compilation.
Implementing an SFDR software solution does not end with deployment.
It is essential to establish review cycles and internal audits that ensure data quality and report consistency over time.
Planning periodic validations helps detect deviations early, improve capture processes, and maintain alignment with future regulatory updates.
A good governance approach should include automated quality checks, approval workflows, and documented reviews before each submission.
This continuous control strengthens both internal accountability and external trust, proving that ESG reporting is accurate, verifiable, and up to regulatory standards.
Audits are not merely a control measure; they are also a way to learn from reporting processes, identify efficiency opportunities, and refine data governance year after year.
In our case, Dcycle is a technology solution designed for companies that want to manage sustainability with rigor and efficiency.
We are not auditors or consultants; we are an ESG platform that centralizes, normalizes, and connects all the information needed to comply with SFDR and any other regulatory framework.
Our technology automates data collection, integrates PAI indicators, generates RTS and XBRL reports, and maintains complete traceability across CSRD, Taxonomy, and SFDR.
Everything operates in an intuitive, scalable environment, ready to adapt to the market’s regulatory demands.
With Dcycle, we help companies move from compliance management to strategic management, using ESG data as a true competitive advantage.
Because measuring correctly is not only about compliance—it’s about positioning better and anticipating future challenges.
The SFDR (Sustainable Finance Disclosure Regulation) is a European regulation aimed at increasing transparency around how financial entities manage ESG factors within their investment decisions.
It establishes what information must be disclosed and in what format, both at the organizational level and the product level.
Its purpose is to enable investors to objectively compare different funds or strategies, understanding the real degree of sustainability integration in each one.
In other words, SFDR regulates how to disclose information, not how to invest, creating a common framework to ensure coherence and traceability of ESG data across the European financial market.
SFDR applies to all financial market participants and advisers offering investment products within the European Union.
This includes asset managers, insurers, investment funds, and any entities involved in designing or distributing financial products.
It also applies to products categorized under Articles 6, 8, and 9, depending on their level of ESG integration.
Each category comes with different disclosure obligations, which means a structured and precise data management system is essential to meet the requirements of each level.
PAI (Principal Adverse Impacts) are indicators that measure the negative effects of investments on environmental, social, and governance factors.
They are a core part of SFDR, allowing an evaluation of how investments affect the environment and society beyond financial performance.
Entities must collect, calculate, and disclose these indicators periodically, following methodologies defined in the RTS (Regulatory Technical Standards).
The process requires verifiable data, full traceability, and reporting consistency, which is why an increasing number of organizations are automating their collection and validation.
The SFDR, CSRD, and EU Taxonomy form part of a single regulatory ecosystem that aims to align ESG information between companies and investors.
The CSRD obliges companies to report ESG data according to ESRS standards, while SFDR uses that information to evaluate and disclose sustainability risks and impacts of investments.
Meanwhile, the EU Taxonomy defines the technical criteria that determine which economic activities are aligned with European environmental goals.
Together, these three frameworks create a coherent and verifiable information flow, where the data reported by companies serves as the foundation for the reports financial managers must submit under SFDR.
An SFDR-focused software solution allows the automation of the entire process of data collection, validation, and ESG reporting, eliminating manual dependency.
Among its main benefits are:
Additionally, it promotes coherence between ESG strategy and disclosures, ensuring that what is communicated to the market accurately reflects real outcomes.
In the end, adopting a technological solution for SFDR turns compliance into a competitive advantage, enabling organizations to work with reliable, up-to-date, and auditable data at all times.
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The most recognized methodologies are:
Digital tools like Dcycle simplify the process, providing accurate and actionable insights.
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Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.
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