Hedge Funds Emerge as Winners as Europe Rolls Back ESG Rules

Hedge funds and other alternative asset managers are on track to avoid controversial ESG reporting requirements in the European Union, as the bloc waters down a framework intended to create transparency around environmental, social and governance risks.

The Alternative Investment Management Association, whose members oversee roughly $4 trillion of combined assets, has warned that the original scope of the EU’s Corporate Sustainability Reporting Directive would have imposed an “enormous burden” on hedge funds and private credit managers.

But it now looks like virtually none of its members will be affected by CSRD, after the EU responded to criticism by ...