ESG & Investing
Goldman Analysts Have Bad News for Fund Managers Ignoring ESG
- Analysis looks at effect of EU regulations on fund industry
- Investors are moving toward most sustainable products
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Asset managers trying to sell funds in Europe are finding it “increasingly difficult” to do so unless their products are registered as ESG, according to a study by analysts at Goldman Sachs Group Inc.
The research comes more than two years after the European Union enforced its Sustainable Finance Disclosure Regulation, a landmark ESG investing rulebook with global reach designed to stamp out greenwashing and direct capital into sustainable activities. Since 2019, the same year lawmakers first adopted SFDR, its two ESG categories — Articles 8 and 9 — have received 3.4 times as much in client flows as their non-ESG counterpart — Article 6, according to the Goldman analysis.