Europe’s fund market faces a major shake-up under SFDR 2
Europe’s fund market is on the brink of a major reshuffle. Under SFDR 2.0, the European Commission’s revised sustainability rulebook, non-sustainable Article 6 funds are set to become the dominant category at the expense of the most popular sustainability category, Article 8.
SFDR overhaul sets strict new rules for sustainable fund labels
The European Commission on Thursday unveiled sweeping changes to Europe’s Sustainable Finance Disclosure Regulation.
UK ESG fund labels seen as poor example for SFDR 2.0
The United Kingdom’s new ESG fund labels have struggled to gain traction. As Brussels prepares an overhaul of the Sustainable Finance Disclosure Regulation (SFDR), a senior Morningstar expert warns Europe not to copy London’s model.
Luxembourg watchdog questions credibility of early CSRD reporting
Luxembourg’s financial regulator has warned that companies’ first attempts at sustainability reporting under EU rules risk overstating green progress, citing inconsistent practices and weak transparency.
Aviva fine marks start of SFDR enforcement era in Europe
As Europe’s watchdogs tighten scrutiny on Article 8 funds, managers must now defend their classifications or risk being challenged across EU markets.
Tangible sustainable investment benefits still hard to substantiate
Demonstrating the impact of sustainable investment remains a significant challenge, according to participants involved in producing a joint report by the Luxembourg Sustainable Finance Initiative (LSFI) and PwC Luxembourg.
LuxFlag chair: ‘We’re entering a new era of labelling’
LuxFlag’s Sustainability Investment Week (LSIW24) kicked off on Tuesday, with several speakers sharing their relative optimism around commitments to ESG and impact investing.
ESAs support a SFDR 2.0 ‘product labelling regime’
Sebastiaan Hooghiemstra at Loyens & Loeff reviews the opinion tabled by the EU’s supervisory agencies on SFDR as a possible labelling regime, and finds that the question on whether “Article 8” and “Article 9” products should be abolished, is not yet off the table.
‘Reputation risks may lead to fewer ESG products’
Fears in the financial sector that the reputation of institutions - banks as well as fund managers - might suffer as an indirect consequence of stringent sustainable finance regulations might deter firms from developing new ESG products or could make them reluctant to finance companies that claim to be green or sustainable.
John Kerry has a message for Luxembourg finance
The impending climate crisis is claiming ever-more attention on the political level. Part of the solution to it will be to spend what’s estimated to be trillions per year on cutting and mitigating emissions. The ability of the financial industry to raise and allocate money has got the political classes’ attention. Former US presidential candidate John Kerry – now the United States’ first-ever special presidential envoy for climate – and Luxembourg financial minister Yuriko Backes on Wednesday discussed Luxembourg’s role.