An ‘impossible product’? Comparing Europe’s dissonant ESG fund labels

(Qontigo) The list of sustainable investment (SI) frameworks guiding portfolio design is long and continues to proliferate. Many countries now have their own ESG labels to ensure a certain quality of SI for the growing pool of funds targeting sustainability goals. But with each one having different stated aims, scope and criteria, how should fund issuers navigate this complicated landscape?

new whitepaper by Anna Georgieva and Saumya Mehrotra of Qontigo’s Sustainable Investment team examines the criteria used in the 12 most important European frameworks setting standards for SI products, including Belgium’s Towards Sustainability label, the German-speaking countries’ FNG Label, and France’s SRI and Greenfin labels. They provide a like-for-like comparison of exclusionary criteria and portfolio-construction techniques as applied in each individual label. The authors’ motivation is to highlight the discrepancies among the various labels and inform interested stakeholders about the intricacies of the current situation.

Read more here.

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