A question of time: EU taxonomy sparks race among managers to improve ESG credentials

Asset managers scramble to adapt to new SFDR rules

The EU's sweeping reforms of sustainability regulations will bring greater ESG transparency, but asset managers warn they risk creating a 'green bubble' as investors could rush towards a handful of firms considered truly sustainable in a bid to improve their overall ESG scores.

As of March, the Sustainable Finance Disclosure Regulation [SFDR] will require asset managers to incorporate sustainability risks across their investment processes, product governance and internal systems....