United States: BlackRock unveils climate funds targeting the toughest ESG clients

The world’s largest asset manager announced that its new global Climate Action Multi-Asset Fund (and Climate Action Equity Fund) will be labeled with the Article 9 label. This is a category in Europe’s ESG investing rulesbook that places sustainability first. These products make up a small percentage of ESG funds.

However, they are expected to increase in importance as more investors attempt to protect themselves from greenwashing. Last year, the Sustainable Finance Disclosure Regulation was implemented in Europe to combat greenwashing. According to Morningstar Inc., ESG funds in Europe saw a more than 25% increase in third quarter inflows.

This is despite the fact that ESG products are not delivering sufficient emissions reductions to meet the 1.5 Celsius increase in temperatures required to avoid a global catastrophe.

This article was originally posted at bloomberg.com

 

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