Finding ESG Funds Just Got Easier
New regulation helps investors identify funds with a sustainable mandate more easily-
March 10 saw the EU Sustainable Finance Disclosures Regulation (SFDR) take effect, requiring fund companies to classify each of their funds into one of three categories: Article 6, 8, or 9, depending on the strategy’s objective.
The less-than-catchy category titles are derived from the legislations. All funds are now required to provide some ESG disclosure (as per Article 6), while Article 8 (or light green) and Article 9 (dark green) funds will be required to provide more detailed ESG information to investors.