Using SFDR’s “loopholes” can attract greenwashing claims
February 10, 2022 •
In this note, Dominic Webb highlights this “Responsible Investor” article entitled “SFDR reclassifications raise ‘legitimate’ greenwashing concerns, warns Morningstar“:
Morningstar has warned that funds reclassifying themselves as Article 8 under SFDR without making changes to their investment strategy or holdings could leave managers open to greenwashing accusations in a new report.
“[…] investors could be misled in thinking that funds marketed as promoting ESG characteristics or pursuing sustainable goals are noticeably different from what they were prior to SFDR or different from similar offerings that haven’t been classified as Article 8 or Article 9”, the report claims.