Policy-makers are adopting rules on the use of sustainability terms in fund names and marketing to reduce greenwashing in multiple regions.
*Sustainability terms include, but are not limited to transition, improve, progress, net-zero, environmental, green, climate, ESG, SRI, social, equality, governance, controversies, impact, sustainable.
ESMA - Guidelines on Funds’ Names Using ESG or Sustainability-Related Terms
FCA - Sustainability Disclosure Requirements (SDR) and Investment Labels
*Sustainability terms include, but are not limited to transition, improve, progress, net-zero, environmental, green, climate, ESG, SRI, social, equality, governance, controversies, impact, sustainable.
ESMA - Guidelines on Funds’ Names Using ESG or Sustainability-Related Terms
FCA - Sustainability Disclosure Requirements (SDR) and Investment Labels
The deadlines to which fund managers must adhere, are fast approaching! Compliance requires sustainability data for assessment, reporting capabilities, and ongoing monitoring of thresholds.
The SEC, as of January 24th, has not put out any communication that they plan to push the compliance dates or re-examine the rule.
ICE combines a range of reported data from corporates on ESG themes with controversies and sustainable regulatory data as well as instrument reference data and fundamentals to help customers build screens aligned with investment strategies to ‘test’ fund holdings.
*ICE will work with user to create and perfect their rules
Below is an example of rule details that can be run for funds and the summary of the pass or fail rate across rule sets.
*The ICE service currently provides results in XML format for clients to use in the production of their fund reports.