Sustainable Finance has become an increasingly important part of decision-making across the financial sector. By integrating Environmental, Social and Governance (ESG) considerations into investment decisions, financial institutions and market participants can assess sustainability-related factors alongside traditional financial considerations.
At European Union level, an extensive regulatory framework has been developed to support sustainable practices and advance the objectives of the EU Green Deal. This framework affects financial institutions by introducing regulatory obligations and shaping how sustainability considerations are incorporated into their operations and investment activities.
In this blog,
Evdokia Pitsillidou, Global Chief Risk & Compliance Officer at
SALVUS Funds and instructor at the Institute for Professional Excellence, introduces the key themes covered in the online course “
Sustainable Finance: Regulatory Framework & ESG Factors in 2026.” The course explores the fundamentals of Sustainable Finance, the EU regulatory framework, ESG Factors and investing strategies designed to align with ESG mandates and support sustainable returns.
By completing the course, participants will gain a clearer understanding of the EU Sustainable Finance framework, relevant regulatory obligations for financial institutions, and how sustainability informs investment decision-making within the 2026 regulatory landscape.
Sustainable Finance and the EU Regulatory Framework
Sustainable Finance refers to the integration of ESG considerations into investment decisions within the financial sector. It supports a broader approach to finance in which sustainability-related matters are considered when evaluating investments and making strategic decisions.
European financial markets have seen the introduction of a broad range of regulations and directives covering different aspects of Sustainable Finance and various categories of market participants.
The European Green Deal represents an important milestone in the development of the EU's sustainable finance policy. It builds on earlier initiatives, including the EU's 2018 Action Plan on Financing Sustainable Growth, and provides a wider policy context for subsequent sustainable finance initiatives and their objectives.
For financial institutions, the framework creates relevant regulatory obligations and requires consideration of how sustainability-related requirements may affect their operations, governance and investment activities.
Environmental, Social and Governance Factors
ESG Factors provide a structured basis for considering sustainability matters in responsible investing and decision-making. Each factor addresses a different dimension of how an investment, organisation or activity may interact with the environment, people and governance arrangements.
The three components considered by the course are:
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Environmental Factors
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Social Factors
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Governance Factors
Considering these factors together can help professionals form a more complete view of sustainability-related matters and how they may influence investment choices.
Regulatory Impact on Financial Institutions
Sustainable Finance regulation has practical implications for financial institutions. Professionals need to understand the existing obligations relevant to their organisation and how those obligations may affect internal processes and investment-related decisions.
Keeping pace with the regulatory framework also helps institutions anticipate developments and consider whether their operations remain compliant with applicable sustainability-related requirements and, where relevant, consistent with their stated sustainability objectives and commitments.
A clear understanding of the framework can therefore support informed planning, responsible decision-making and the effective integration of ESG considerations into relevant activities.
What is the “Sustainable Finance: Regulatory Framework & ESG Factors in 2026” course and what does it include?
Delivered by
Evdokia Pitsillidou, Global Chief Risk & Compliance Officer at
SALVUS Funds, through the IforPE platform, the course has been developed to introduce professionals to the fundamental concepts of Sustainable Finance and ESG Factors.
This self-paced course is relevant to professionals across a range of sectors and roles who wish to strengthen their understanding of Sustainable Finance, ESG considerations, and the evolving European regulatory framework.
By completing the course, participants will gain a clearer understanding of the EU Sustainable Finance framework, relevant regulatory obligations for financial institutions, and the role of ESG factors in investment and decision-making.
The course focuses on the following areas:
- Introduction to Sustainable Finance and ESG Factors
- What is Sustainable Finance?
- What are the ESG Factors?
- Why are SF & ESG considerations important?
- The road to the EU Green Deal
- The UN 2030 Agenda
- The Paris Agreement
- The European Green Deal
- Sustainable Finance Regulatory Framework
- Sustainable Finance Regulatory Framework
- Sustainable Finance Disclosure Regulation
- EU Taxonomy Regulation
- Non-Financial & Corporate Reporting Directives
- CRR & IFR Prudential Disclosures
- Benchmark Regulation
- ESG Rating Activities Regulation
- Sustainable Finance Disclosure Regulation
- Aim & Objectives
- Who is obliged under SFDR?
- SFDR significant provisions
- SFDR Regulatory Technical Standards
- Aim & Objectives
- Where does the EU Taxonomy apply to?
- Environmentally sustainable economic activity
- Technical screening criteria
- Transparency obligation
- CRR & IFR Prudential Disclosuress
- ESG Disclosures for financial institutions
- ESG Disclosures under Pillar III
- ESG Disclosure for Investment Firms
- MiFID II, AIFMD & UCITS Directive enhancements
- MiFID II enhancement
- AIFMD enhancement
- UCITS Directive enhancement
- Greenwashing
- Negative screening
- Norm-Based screening
- Best-in-Class
- ESG Integration
- Active Ownership
- Thematic investment
- Impact investment
The course is delivered through online video recordings and downloadable PDF study material, allowing professionals to learn whenever and wherever it suits them best. Participants can progress at their own pace, revisit topics as needed and reinforce their knowledge through accessible and structured learning resources.
Upon successful completion, participants receive a certificate awarding 5 CPD hours, recognised by CySEC, the Central Bank of Cyprus, and other professional supervisory bodies. The course contributes towards the annual CPD requirements of CySEC Advanced and Basic Certification holders, as well as professionals registered with ICPAC and the Cyprus Bar Association.
