ESG & Investing
Asset Managers Rebuffed as EU Cracks Down on Use of ‘ESG’
- Plan targets funds with ‘ESG’ and ‘sustainable’ in their name
- Watchdog says it wants to protect investors from false claims
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Europe’s markets watchdog says it isn’t backing down from a controversial plan to restrict the use of “ESG” and “sustainability” in fund names, despite a barrage of criticism from asset managers.
The European Securities and Markets Authority wants asset managers to know that it won’t abandon its proposal. That’s after industry giants, including BlackRock Inc., Amundi SA and the asset management unit of Goldman Sachs Group Inc., characterized large parts of the plan as potentially unworkable in their responses to an ESMA consultation earlier this year.