New ESG Rules Spark Debate in Europe
In May, the European Securities and Markets Authority announced new regulations to address confusion and contradictions on sustainable investing. This move calls attention to the debate over whether stocks from fossil-fuel companies should be included in environmental, social and governance (ESG) funds. It also tightens regulations on sustainable investing and puts more than one-half of ESG funds in Europe on notice, prompting some fuds to change their names to accurately reflect their holdings or sell off billions in assets. The new rules create a framework for asset managers to use when naming their investment funds, which each term used being…