ESG rules go global

June 29, 2022 EcoVadis ‏‏‎

Europe has led the way on sustainable finance regulation with the SFDR. As the US and UK step up their own guidance, some regional divergence means fund managers are customising their approach…

It has been over a year since Europe’s Sustainable Finance Disclosures Regulation (SFDR) was brought into force. Since then, around 1,800 funds have been upgraded from Article 6 (funds which do not integrate sustainability into the investment process) to Article 8 or 9, or from Article 8 to Article 9, according to data from Morningstar’s 2021 review of funds published earlier this year. 

In a survey of the industry by Private Equity Wire, around eight out of 10 respondents expected ESG to be an area of greater regulatory focus, within a list of other priorities. But with the inevitable delays in these regulations, there is the potential for SFDR to turn into a fund product label and revert to being a marketing tool, says an advisory source. Subsequent regulations, if implemented incorrectly, run the risk of devaluing the entire ESG proposition, the source adds. 

Read the full article at:


About the Author

EcoVadis ‏‏‎

EcoVadis is the world’s most trusted provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Backed by a powerful technology platform and a global team of domain experts, EcoVadis’ easy-to-use and actionable sustainability scorecards provide detailed insight into environmental, social and ethical risks across 200+ purchasing categories and 175+ countries.

Follow on Twitter Follow on Linkedin Visit Website More Content by EcoVadis ‏‏‎
Previous Article
Over half of private capital fund investors now expect daily ESG fund updates
Over half of private capital fund investors now expect daily ESG fund updates

New research from Intertrust reveals that CFOs may in fact be underestimating investor expectations in repo...

Next Article
German investors prioritise ESG, sustainability criteria 
German investors prioritise ESG, sustainability criteria 

A majority of German institutional investors (83%) take ESG and sustainability criteria into account in the...