After Slamming ESG Plan, Fund Managers Are Told to Sit Tight
- ESMA consultation on thresholds is met with ‘fierce’ response
- Industry is being advised to assume proposal will be changed
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Asset managers are being advised by their lawyers not to adapt portfolios to planned ESG rules that would force many to abandon the label.
A proposal by the European Securities and Markets Authority, for which an industry consultation ended last month, has been met with alarm and dismay by investment managers. ESMA, which wants to set minimum thresholds for what funds must do before marketing a product as ESG or sustainable, is now plowing through the feedback and plans to move forward with its proposal in the second and third quarters.