The European Commission said Thursday it wants to exclude companies involved in fossil fuels from financial products marketed as "sustainable" in the EU, a step long demanded by environmental groups and experts.

The move is part of EU proposals to revise the bloc's Sustainable Finance Disclosure Regulation (SFDR), introduced in 2021 to steer savers toward greener investments through a classification system for funds.

NGOs and experts had urged the EU executive in late September to overhaul what they called an overly vague and permissive framework, insisting at minimum that firms expanding fossil fuel activities be excluded.

The commission proposal appears to answer that call, by acknowledging that the current system could mislead investors and proposing a stricter three-tier classificat

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