ESG & Investing
Mass ESG Fund Downgrades That Rocked Market May Be Reversed
- EU Commission says passive strategies can be Article 9
- Asset managers stripped Article 9 off €175 billion last year
Electricity pylons in a forest.
Photographer: Bartek Sadowski/BloombergThis article is for subscribers only.
A mass wave of downgrades that shocked investors as they watched Europe’s top ESG designation get stripped from almost $200 billion may now be reversed.
Many of the reclassifications, which saw a coveted ESG tag known as Article 9 get wiped off €175 billion ($192 billion) in funds in late 2022, appear to have been unnecessary in light of new guidance from the European Commission, according to Hortense Bioy, global director for sustainability research at Morningstar Inc.