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Europe’s ‘Light Green’ Funds to Face Minimum ESG Standards

  • Goal is to create ‘baseline for sustainability performance’
  • The ESG industry is facing tougher regulatory scrutiny
    
Photographer: Mikael Sjoberg/Bloomberg
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The European Commission is planning to introduce minimum standards for so-called light green funds in an effort to rein in asset managers and prevent greenwashing.

As soon as Europe’s landmark rule book for the investment industry -- the Sustainable Finance Disclosure Regulation -- is “fully in place,” the intention is to fine-tune it and create a common starting point, Elodie Feller, sustainable finance policy officer at the commission, said Wednesday at a digital conference held by Principles for Responsible Investment.