Amundi Leads European Asset Managers With Funds Labeled Green

(Bloomberg) -- Amundi SA has more green assets under management than any other investment fund in Europe, according to a study by PwC assessing the extent to which the industry is adapting to new regulations introduced this year.

About a third of all assets in European investment funds are now green, with so-called light and dark green products climbing to 3.3 trillion euros ($3.7 trillion) at the end of June, according to new figures compiled by PwC’s Luxembourg office. Blackrock Inc. was ranked second after Amundi, followed by BNP Paribas SA, Swedbank AB and Nordea Bank Abp. 

The development follows Europe’s enforcement of the Sustainable Finance Disclosure Regulation in March, a landmark rule book designed to fight greenwashing by forcing transparency on the market for environmental, social and governance investing. SFDR is part of a wider European regulatory framework intended to redirect capital away from activities that pollute or feed social injustice, and instead steer funding into more ethical endeavors.

“This increased regulatory momentum, coupled with increased societal awareness and investor demand for ESG, is urging an all-encompassing paradigm shift within Europe’s mutual funds landscape,” PwC said. The firm expects ESG assets under management to “skyrocket” to as much as 7.6 trillion euros by 2025, or 57% of total EU-domiciled assets.

Europe’s efforts to impose stricter rules come amid growing anxiety that the proliferation of ESG assets masks a good deal of mislabeling. According to Bloomberg Intelligence, the ESG market soared past $35 trillion last year, though other estimates put the total figure well below that level, based on stricter definitions. 

The surge in ESG investing comes even as asset managers say they don’t have the tools to properly address the challenges posed by climate change. Fewer than half of real asset investors managing a combined $21 trillion actually track portfolio emissions, according to a survey by Macquarie Asset Management. What’s more, 16% say they don’t even plan to do so.

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