Asset Managers Fear EU’s ESG Rewrite Will Bungle ‘Crucial’ Step

Asset managers are starting to voice concerns that the European Union’s widely publicized rethink of its ESG rules will overlook a major gap they say has long undermined the bloc’s regulatory framework.

The ruleset in question is the Sustainable Finance Disclosure Regulation. Asset managers targeting investment clients in Europe have had to comply with SFDR since March 2021, even though the companies that fill their portfolios are only now facing similar requirements to disclose their environmental, social and governance metrics.

For fund managers, the misalignment of SFDR and disclosure requirements under the Corporate Sustainability Reporting Directive has been a ...