CFA urges clarity on UK, EU and US sustainable fund classification

Three ‘observable features’

Sorin-Andrei Dojan
clock • 2 min read

The CFA Institute has called on policymakers from the UK, EU and US to adopt frameworks that improve the classification of ESG funds.

According to the CFA's How to Build a Better ESG Classification System report, the ESG frameworks put in place across the three regions present challenges due to lack of focus on observable features, as well as the presence of unclear definitions or incomplete logical structures. Chris Fidler, head of global industry standards at the CFA Institute, argued "there is much disagreement about how to categorically define and identify ‘ESG funds'", and added that a better way would be "to have different evaluators classify the same sets of funds" using "three observable features". The first...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

BP's plans to ditch oil production target shows fiduciary duty trumps ESG
ESG

BP's plans to ditch oil production target shows fiduciary duty trumps ESG

Share price woes

Linus Uhlig
clock 11 October 2024 • 3 min read
CCLA: Tech giants are overlooking employees' mental health needs
ESG

CCLA: Tech giants are overlooking employees' mental health needs

World Mental Health Day

Beth Brearley
clock 10 October 2024 • 1 min read
FE fundinfo's Matthias Breier: FCA's SDR deadline extension is a call for proactive compliance
ESG

FE fundinfo's Matthias Breier: FCA's SDR deadline extension is a call for proactive compliance

Not 'an opportunity to relax'

Matthias Breier
clock 09 October 2024 • 5 min read
Trustpilot