More bad news for ESG funds
15:00
On Thursday, Bloomberg reported that many of Europe's top ESG-rated funds are investing in companies that violate UN and OWGiR standards by committing abuses such as corruption and environmental pollution.
Investors have reacted negatively to this, as reflected in the negative balance sheets of most of the vehicles promoted as extremely ESG compliant.
A study by Clarify AI found that as many as 20 percent of the 750 top-rated funds have at least 10 percent exposure to entities operating against the UN's ten core principles of corporate governance on human rights, business ethics, the environment, and anti-corruption.
Regulations for ESG-compliant fund ratings have been questionable since their inception in March 2021. Loopholes and doubts about the proper application of the rules have forced the EU to repeatedly clarify assumptions.
