Funds Sold as ‘Sustainable’ Hit by Crossborder Reality Check
- Clarity AI says only 4% of funds make the cut in EU, US and UK
- Study reveals major gaps in crossborder sustainability rules
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Hardly any sustainable funds would consistently be able to market themselves as such in the UK, the US and the European Union as watchdogs in the three jurisdictions implement divergent anti-greenwash rules, according to a fresh study based on more than 18,000 investment products.
Research by Clarity AI, a sustainability technology platform whose customers include BlackRock Inc., Invesco Ltd. and MetLife Inc., found that only 4% of funds with the word sustainability or some version of it in their names actually comply with all current and planned requirements set by authorities in the three jurisdictions.