sustainable finance

Engaging with investors on sustainable investing requires answering two questions: How do sustainability factors impact returns? How do investment choices impact the world? “Good Practices in ESG Reporting” is the topic of this Benelux webinar hosted by Morningstar and Investment Officer.

The demand for ESG-compliant investments is growing, especially among professional investors. The urgency of climate change and the regulatory requirements are driving the development for responsible investing. 

Vanguard, the world’s second-largest investment fund manager after BlackRock, is finding itself in a political tug of war in the US that now has led to its decision to withdraw a top international alliance of asset managers that seeks to promote sustainable, net zero investments, the Net Zero Asset Management initiative, also known as NZAM.

Luxembourg’s financial supervisor CSSF has made clear that it expects investment funds that commit to sustainability objectives will stick to these commitments. If a fund defines thresholds for specific ESG or sustainability investments, then it should consider these as a “binding commitments”.

Europe’s asset management industry finds itself under a public magnifying glass after a team of international investigative journalists discovered that the most sustainable funds are still investing in polluting companies. Earlier warnings on possible reputation risks, also from specialists inside the sector, now echo loudly, but so does the observation that a lack of clarity in the current sustainability regulations poses significant challenges, both for the industry and investors.

A new set of rules - part of an update to the EU’s Mifid 2 directive - took effect in Luxembourg on Tuesday that will set out how banks and asset managers are required to handle their investment products in terms of Environmental, Social and Governance.

Morningstar and Investment Officer Luxembourg invite you to join us online on Thursday 1 December 2022 at 15 CET for the “Good Practices in ESG Reporting” interactive online debate. 

A panel of sustainable finance experts from financial institutions and authorities in the Netherlands, Belgium and Luxembourg will debate good practices in ESG reporting for investors and asset managers. 
 

The EU’s top category of sustainable investment funds - impact funds as defined under SFDR Article 9 - saw inflows double in the third quarter compared to the second, while funds that are considered mostly sustainable, or Article 8 ESG funds, continued to bleed, research insights by Morningstar show. The analysis also shows that more than 380 funds were reclassified during the third quarter.

Europe’s fund and asset management industry, seeing rapid growth in investor demand for sustainable products, is asking EU policymakers for a robust and transparent new legal framework that clearly defines how ESG and sustainability ratings for investment products are determined.

BlackRock finds itself caught in a tug of war in US politics over its approach to sustainable investing.

On the one hand, there are Republican-led states that believe the world’s largest asset manager is hostile to the carbon-focused industry. On the other hand, there are Democrat-led governments that believe BlackRock is backtracking on its commitment to addressing climate issues.