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Amundi, Deutsche Bank’s DWS Downgrade ESG Funds in Big Reset

  • Amundi says ‘almost all’ Article 9 funds affected by the move
  • Downgrades come amid ‘evolving’ regulatory guidelines from EU
The Amundi Evian Championship - Day Two
Photographer: Stuart Franklin/Getty Images
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Amundi SA and Deutsche Bank AG’s DWS Group are downgrading billions of dollars worth of ESG funds, adding to the sense of disarray that’s spreading across Europe’s asset management industry as it digests stricter regulatory guidance.

Amundi is reclassifying almost all funds listed under the EU’s top ESG category, known as Article 9, a spokesperson for Europe’s largest asset manager told Bloomberg. Instead, the funds will be classified as Article 8, the spokesperson said, referring to the EU’s less stringent environmental, social and governance fund class. The decision reflects “a conservative approach” as Amundi tries to adapt to the EU’s evolving regulatory environment, the person said.