Infrastructure funds that market themselves as sustainable to EU investors will come under new rules from March, René Lavanchy reports.
On 10 March, the EU’s Sustainable Finance Disclosure Regulation (SFDR) will come into force. It will usher in a set of requirements to make disclosures and create policies about sustainable finance which will apply – at least minimally – to all asset managers marketing themselves to investors in the EU. Some commentators expect it to set an example which the rest of the world will follow.
Such an example cannot come soon enough, suggests Nishtha Manocha of the EDHEC Infrastructure Institute. Last year, EDHECInfra studied 17 different ESG evaluation schemes relevant to infrastructure investment. “One of the conclusions that came out of it was that they are very divergent and hence there is a need for consolidation. This is where I feel Europe is moving ahead in the race,” she says. “As long as this is voluntary, and there are 20 different schemes existing which are different, you can’t come up with a final answer and you can’t compare.”
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