The ESG label for funds could be ditched in Europe after asset managers complained that EU classifications were “unworkable”.
The tightening of EU criteria for the greenest category of investment has led asset managers including BNP Paribas, BlackRock, Amundi and Pictet to remove the label from €175bn (£154bn) of funds in just over three months to January, reducing the size of the €282bn market by nearly 40%.
EU commissioners are now in talks about “getting rid of Article 9 entirely”.
Several people familiar with discussions between EU officials and industry say the commission is now debating whether to scrap the category altogether, to quell fears of greenwashing and address the frustration of the market.
