Only 1% of European funds meet EU green standard

grow an investment 0

F. Rodriguez| Only 16 funds out of a sample of three thousand European collective investment vehicles -known as UCITs (Undertakings for the Collective Investment in Transferable Securities), which globally manage one trillion euros, meet at least three of the criteria of the EU’s European standard for European products and services – EU Ecolabel – according to an analysis of managers’ portfolios and proxy data published by ESMA, the EU’s capital markets authority, last December.

Only 1% of the funds analysed reach the 50% limit of investment in assets classifiable as green, a percentage that drops to 0.5% if holdings in companies in the fossil fuel sector are taken into account, according to the EU Ecolabel: Calibrating green criteria for retail report produced by ESMA analysts.

This EU green label was designed to catalogue the financial offer targeted at retailers and help them “make informed decisions when investing in products with a sustainable approach”, as stated in the above-mentioned report.

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