- New rules in Europe to crack down on greenwashing are not making it easier to spot genuine environmentally-friendly funds as asset managers continue to apply different standards.
- A surge in demand for green investments has led to a rush by investment managers to label products as sustainable, when often portfolios still include carbon-intensive businesses.
- The European Commission has tried to provide more clarity with its Sustainable Finance Disclosure Regulation (SFDR).
- More than 100 out of 891 Article 9 funds in Europe were invested in some aspect of thermal coal, a big climate change contributor.
- The new regime has not resolved the inconsistencies in the portfolios claiming green credentials.
- The people Reuters spoke to said discrepancies among fund portfolios reflected a lack of clarity from the Commission over what constitutes a sustainable investment.
Greenwashing crackdown in Europe leaves investors in the dark
New rules in Europe to crack down on greenwashing are not making it easier to spot genuine environmentally-friendly funds as asset managers continue to apply different standards for what constitutes sustainable investing.
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