Hedge Funds’ Top Clients Step Up Demands for ESG Strategies (1)

ESG is turning into a mainstream investment strategy as fund managers see client and regulatory pressure raising environmental standards. ESG objectives are said to be clearly aligned with fiduciary duties. Concerns among hedge fund managers include lack of standardization in terms of environmental performance data and “greenwashing” on the part of originators. The EU Taxonomy on Sustainable activities is expected to bring transparency and curtail “greenwashing”.