ESG & Investing
Fund Managers Seen Conducting ESG Purge Due to EU Rule
- Morningstar says 4,300 funds may be impacted by new guidelines
- The implications are ‘significant’ for ESG, Bioy says
New rules limiting how freely asset managers can attach the ESG label to funds sold in Europe promise to trigger a widespread purge across the industry, according to a fresh analysis by Morningstar Sustainalytics.
Roughly 4,300 funds domiciled in the European Union that currently claim to pursue environmental, social or governance goals, or that carry similar sustainability-related labels, are potentially affected by new guidelines unveiled in May by the European Securities and Markets Authority, Morningstar Sustainalytics said on Wednesday.