One in Four Funds Are “Sustainable” Under New EU Rules

Morningstar announced that one in four European funds have classified themselves as sustainable under the new EU ESG rules. Under the EU Sustainable Finance Disclosure Regulation, products can be classified as either Article 9 (fully focused), Article 8 (partly focused) or Article 6 (not focused). 24% of ESG open-end funds and ETFs in Europe are under Article 8 or 9, representing a combined €2.16tn of assets. Europe’s biggest asset manager, Amundi, has classified 530 of its funds as Article 8 or 9, BNP Paribas has 313 and BlackRock has 103.