After what felt like a whirlwind of intense change and uncertainty in EU legislation, it feels like the dust is finally starting to settle. While the introduction of brand-new rules has slowed down a little, the implementation requirements for 2026 are still very much in focus.

The European Commission has unveiled its long-awaited proposal to overhaul the Sustainable Finance Disclosure Regulation (SFDR). This marks a significant pivot from a transparency framework to a formal product categorisation system, aimed at tackling greenwashing and simplifying the landscape for investors.

In the high-stakes world of private equity, a single misstep can unravel a deal, damage a reputation, and erode value. Today, the most significant and often overlooked risks don't appear in a balance sheet. They hide in a company's environmental footprint, its social practices, and its governance structure. This is why ESG due diligence is no longer a 'nice-to-have', it's the new, non-negotiable standard for protecting and creating value.