Finance
Vanguard, Fidelity Investments Fall Short in ESG Fund Ratings
- Morningstar finds low ESG integration in quarter of 40 firms
- Low scores given for small teams, lack of active engagement
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Fund giants including Vanguard Group Inc. and Fidelity Investments Inc. have been given low ratings by research firm Morningstar Inc. in its first in-depth assessment on incorporating environmental, social and governance factors into investment decisions.
The research firm rated 40 asset managers around the world and found that more than a quarter of those do not integrate ESG at all or do so in a very limited way, according to a report on Tuesday. It ranked firms and funds in a four-tier scale from Leaders and Advanced, to Basic and Low.