Europe Plans Major Rewrite of ESG Rules for Asset Managers (2)

After years of complaints from investors, the European Commission is proposing significant changes to the bloc’s ESG fund rules, with the ostensible goal of making the framework more manageable and less prone to greenwashing.

The EU’s executive arm is targeting a dramatic rewrite of the Sustainable Finance Disclosure Regulation, according to a commission document seen by Bloomberg. The goal is to have three distinct categories of environmental, social and governance-linked investment products; to require funds to disclose fewer ESG data points than they do today; and to do away with some firm-wide requirements.

The decision reflects the changing mood toward ...