Regulation

To better understand what impact the ESMA guidelines will have on the ETF market, ETF Insider caught up with STOXX’s Antonio Celeste, Head of Sustainability, Index Product Management, and Saumya Mehrotra, Associate Vice President, Index Product Management.

The German blue-chip benchmark’s largest component has had its weight capped at 15%, a limit designed to preserve the index’s diversification. A STOXX analysis finds that the impact from index trackers selling the shares due to the cap is relatively small, and more so compared to that of active funds observing caps imposed by European regulation.

New ESMA rules establish which funds can carry terms such as ‘ESG’ or ‘SRI’ in their names. While the guidelines are designed for funds, they are likely to impact the names and methodologies of underlying indices too.

As the European Securities and Markets Authority (ESMA) tightens guidelines on fund names to mitigate greenwashing risks, fund managers face new challenges. In our latest report, we explore the implications of ESMA’s new rules on the use of terms like “ESG” and “sustainable” in fund names, and how these changes may impact both investment strategies and marketing practices.

The international body’s framework is a step forward in the adoption of nature-focused metrics. It can help companies address biodiversity issues and guide investors in the construction of portfolios. We compare the TNFD’s recommended process to that of the ISS STOXX® Biodiversity indices.

ISS ESG takes stock of progress this year in new rules on corporate sustainability disclosure, with Europe at the center of action. The data, analytics and solutions provider concludes that regulation change is accelerating, raising reporting requirements for companies and investors alike.

One year after the introduction of Europe’s Sustainable Finance Disclosure Regulation, SFDR Arts. 8 and 9 funds increased their combined share of total European fund assets to 45.6%.

On February 24, Qontigo and Responsible Investor hosted a webinar to discuss the state of play in Europe’s ESG fund labeling landscape. A panel of experts analyzed the aims of the labels, their intersection with broader European regulation, and what it all means for the ultimate goal of achieving a more sustainable economy.

It appears onerous and sometimes confusing, but the European Union’s Sustainable Finance Disclosure Regulation (SFDR) aims to enhance and protect participation in sustainable investments — a cause well worth the trouble.

Fund issuers seeking to design sustainable-investment products to be distributed across European markets face an uphill struggle because of widely diverging national and regional frameworks. A new Qontigo whitepaper highlights the intricacy of Europe’s ESG labeling landscape and provides some recommendations that may help overcome its pitfalls.

Qontigo announced today the appointment of Mohan Verma as Senior Managing Director, Global Head of Business Development.