But a Bloomberg survey of some 20 major European banks and asset managers suggests the regulation leaves too much room for guess work. That means that despite vast piles of cash moving into environmental, social and governance investing, efforts to steer capital away from carbon emitters may ultimately fall short.
As Europe rewrites the rules of investing to protect the planet from climate change, asset managers say they’re seeing differences in how those edicts are being interpreted.
Since March, money managers in Europe have had to adapt to the Sustainable Finance Disclosure Regulation. Designed to fight greenwashing by forcing a uniform set of reporting standards, SFDR is more ambitious than anything agreed elsewhere in the world.
