‘ESG’ Stripped From 23% of EU Sustainable Funds in Review
- Morningstar says many Article 8 funds don’t merit ‘ESG’ tag
- EU is looking into ways to avoid ‘misleading’ fund disclosures
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Almost a quarter of funds that claim to “promote” sustainability under European regulations don’t deserve an “ESG” label, according to a fresh review by market researcher Morningstar Inc.
The analysis, which looked at funds classified as Article 8 within the EU’s Sustainable Finance Disclosure Regulation, shows that 23% don’t live up to environmental, social or governance investing principles, Boya Wang, ESG analyst at Morningstar, said in an interview.