In June 2023, WeeFin published the Sustainable Finance barometer in order to measure the level of ambition and transparency of ESG funds by studying the ESG communication documents of a panel of 50 Article 8 and 9 funds.
While the ESAs are constantly increasing their vigilance with regard to greenwashing practices and announce that they will publish their final report on the topic next May, WeeFin wanted to know if it was possible for the actors to activate levers allowing them to align their practices with ESG ambitions. An analysis has therefore been performed to measure changes in player practices between June and December 2023.
Among the 50 portfolios studied in 2023, some have, in less than 6 months, raised their ESG ambitions and applied more demanding processes.
Thus, among the 50 funds already analyzed in the first half of 2023:
The results are encouraging, as they show that improvements can be made quickly! Indeed, even if the transition may still seem feeble, these figures prove that it is possible to make ESG strategy more ambitious. In particular, it is possible to make it evolve rapidly by relying on expertise, quality data and a tool to manage ESG processes efficiently.
To this end, financial actors that have improved their ESG strategies seem to have been able to seize the opportunity provided by regulations by going beyond a simple reporting exercise.
WeeFin's analysis has also shown that asset managers disclose correctly on how they manage and monitor controversies.
Indeed, between armed conflicts, climate bombs, fast-fashion players involved in the forced labor of Uyghurs, etc., financial players can no longer afford to overlook the anticipation and monitoring of controversies in their investment strategy. It would appear that most asset managers are aligned with these conclusions, since ⅔ of the funds analysed have built a comprehensive and detailed controversy management and monitoring policy.
