A new report said that while greenwashing risk is stabilising, it remains material for the European fund management industry, which could have large ramifications for institutional investors, particularly those with their capital managed by third parties.
According to the report, around 25% of funds classed by EU classifications as Article 8 scored below a score of 3.0 (out of 5.0) threshold for ‘ESG-Assessed’, and 30% of Article 9 funds scored below the 4.0 “Sustainability-Assessed” threshold.
However, only approximately 5% of Article 9 funds are rated below a 3.5.
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