‘Lack of taxonomy harmonisation leads to fragmentation’
The sustainable fund market in Luxembourg and other European fund domiciles has continued its strong growth of recent years, but the short-term impact of the Ukraine war has already disrupted the move to a green future. Still, positive developments are expected in the longer term. The latest updates were set out in the 2022 edition of the European Sustainable Investment Funds Study by Zeb and Morningstar on behalf of the Association of the Luxembourg Fund Industry.
ALFI: Sustainable funds growing strongly
Sustainable funds have grown significantly in the past few years, according to a new study. Sustainable funds’ net assets have increased by as much as 450% since 2018, rising sharply as a share of total fund assets.
Net new money invested in such funds was positive Europe-wide, up 50% in June 2021, reflecting 510% increase of net new money into sustainable funds over the 2018 level.
Is SFDR encouraging greenwashing? Some early evidence
About 31% of fund assets in Europe have been classified under SFDR as article 8 or 9, with 28% as 8 and 3% as 9. Yet there are still some question marks about the effects of this regulation.