Most asset managers score poorly in independent measures of diversity and inclusiveness, despite having profited from the ESG fund boom. Why don’t more fund managers take the G in ESG more seriously?

ESG isn’t supposed to be just another investment strategy, it should focus upon processes and goals. That is a large part of the reason why it has been so popular. Those that are allocating to ESG funds, or in the investment teams at institutions who are running ESG mandates, want to make the world a better place. That includes changing governance practices.

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The SFDR has been around for a long time. The debates and discussions of what this would mean for the European fund industry, and in particular the directors who are responsible for implementing it, took place years ago. One could be forgiven for forgetting that the stressful and difficult part of the SFDR hasn’t yet come into operation. That is its much postponed level 2 which comes into effect this January. (Level 1 has been in operation since March 2021.)

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