Fund Managers Doing Bogus ESG ‘Engagement’ Are Put on Notice (1)

ESG funds that are peddling bogus engagement strategies are about to feel some heat as Morningstar Inc. moves to the next stage of its quality control of the industry.

“We are going to look at engagement more closely, engagement activities related to climate especially, to hold managers to account,” said Hortense Bioy, global head of sustainability research at Morningstar.

It’s the next step in a review designed to weed out greenwashers and make sure investment firms actually live up to their marketing hype around environmental, social and governance strategies. And it comes after a major purge by the market ...