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ESG Fund Chaos Angers Investors as Greenwashing Concerns Mount

  • EU retail investor group due to meet regulators to complain
  • Downgrades follow similar moves by Amundi, BlackRock, Pimco
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The asset management units of Deutsche Bank AG and BNP Paribas SA are adding to a tidal wave of ESG fund downgrades, bringing industry assets under management to have been hit by such reclassifications to well over $100 billion.

BNP said it was stripping Europe’s top ESG designation from $16 billion worth of funds, while DWS Group’s reclassification will hit eight funds holding about $265 million, after announcing $2.1 billion in downgrades last week. The industry has blamed unclear rules for the chaos, as investors start to voice their anger.