Why putting ‘ESG’ or ‘sustainability’ into fund names still matters
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Even though many Article 8 funds under the Sustainable Finance Disclosure Regulation don’t have buzzwords like ‘ESG’ in the names, their inclusion sends a stronger signal to investors.
Speaking to Citywire Selector Hortense Bioy, head of ESG research at Morningstar, said if a fund’s name doesn’t include ‘ESG’ or sustainability terms, these issues are unlikely to play a central role in the strategy.
‘I’m not saying that these funds do not consider ESG factors, many are now doing it. But these factors are, more often than not, non-binding.’
Also in this podcast Bioy discusses Morningstar’s decision to reduce the number of funds it deems sustainable, and what the invasion of Ukraine means for sustainable investments.
Speaking to Citywire Selector Hortense Bioy, head of ESG research at Morningstar, said if a fund’s name doesn’t include ‘ESG’ or sustainability terms, these issues are unlikely to play a central role in the strategy.
‘I’m not saying that these funds do not consider ESG factors, many are now doing it. But these factors are, more often than not, non-binding.’
Also in this podcast Bioy discusses Morningstar’s decision to reduce the number of funds it deems sustainable, and what the invasion of Ukraine means for sustainable investments.
