ESG Fund Labels Disappear in Japan as Clampdown Spooks Industry
- No new fund has used the ESG label in last five months
- Weak performance has also led to fund outflows in Japan
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ESG is becoming a bit of a dirty acronym in Japan.
In the last five months, no new fund has put “ESG” in its name, a sharp drop from roughly one a month for the past few years. Products still identify themselves as “green” or “impact” or “sustainable,” but since the Financial Services Agency signaled new regulations on ESG-labeled funds, asset managers have stopped using the shorthand for environmental, social and governance.