Morningstar Has Cut 27% of the European Funds on its ‘Sustainable’ List
‘The sheer level of reclassification shows the scale of greenwashing that still exists,’
The research house slashed the list of European funds it recognizes as sustainable by 27%, cutting more than 1,600, with combined assets of $1.2tn, in a mass reclassification over the fourth quarter.
The move follows the analysis of additional documentation provided by funds since the implementation of the EU Sustainable Finance Disclosure Regulation (SFDR) rules in March 2021 and underlines how confusing it is for investors to identify genuinely sustainable products.