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Lack of 'social' ESG guidelines causing trouble for fund managers


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Many of the world’s biggest asset managers say they’re increasingly struggling with some of the rules guiding the $35 trillion market for environmental, social and governance investing.
Much of the confusion revolves around defining the social aspect.
The guideposts are generally seen as confusing and this is “going to become a bigger issue going forward,” according to Rick Redding, chief executive of the New York-based Index Industry Association.
He points to a survey by the IIA, which shows that 56% of 300 investment professionals in Europe and the U.S. some managing more than $1 trillion say they’re having a hard time keeping up with edicts intended to steer capital into ESG assets. At the same time, 85% say ESG is a high priority for them. ....

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Brussels offers EU countries greater say on green finance taxonomy


The European Commission has offered EU member states a greater role in deciding which technologies can be considered a sustainable investment in Europe after narrowly escaping a humiliating defeat last year over draft labelling rules for gas under its green finance taxonomy.
It covers 13 sectors, including renewable energy, transport, forestry, manufacturing, buildings, insurance and even the arts, which together account for nearly 80% of EU greenhouse gas emissions, the European Commission said.
The proposal was initially meant for publication before 31 December, but was delayed after a group of 10 EU member states threatened to veto it over concerns that natural gas had been denied “transition” fuel status in the draft guidelines. ....

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