ESG Funds Managing $1 Trillion Are Stripped of Sustainable Tag by Morningstar
- Over 1,200 funds no longer merit ESG label, analysis finds
- Move feeds into fears fund industry is rife with greenwashing
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ESG funds representing more than $1 trillion in assets aren’t delivering on their stated environmental, social or governance goals, according to one of the main researchers tracking the market.
A forensic analysis of the industry resulted in the ESG tag being removed from more than 1,200 funds, or roughly one in five, according to Morningstar Inc.’s classification system. The findings feed into concerns that asset managers are still making misleading claims on the extent to which their allocations are doing the planet or its inhabitants any good.