Assets in mutual funds which invest according to environmental, social and governance (ESG) criteria in Europe grew sharply in 2020 and should continue to accelerate, Europe’s investment management industry body, EFAMA, said on Thursday. Net assets in ESG funds grew to 1.2 trillion euros ($1.43 trillion) in 2020, up 37.1% from the prior year and .
Wednesday, March 10, 2021
Regulation”) was published in the Official Journal on 22 June 2020 and entered into force on 12 July 2020. The Regulation established an EU-wide framework for classifying economic activity as environmentally sustainable and aims at (1) reducing “greenwashing”, where financial products are marketed as environmentally sustainable without sufficient factual basis for their claims and (2) improving the efficiency of private investment in sustainable projects.
An economic activity is classified as an environmentally sustainable activity (an “
Activity”) if it:
contributes substantially to one or more of the environmental objectives (set out in Article 9 of the Regulation) (the “
Objectives”), or directly enables other activities to make a substantial contribution to one or more of them;
South Africa has a looming green problem. The Rainbow Nation has a big carbon footprint and limited plans to change. It sounds like the sort of problem child that investors, armed with a piece of European legislation launched on Wednesday, will soon take to task.
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LONDON (Reuters) - Assets in mutual funds which invest according to environmental, social and governance (ESG) criteria in Europe grew sharply in 2020 and should continue to accelerate, Europe’s investment management industry body, EFAMA, said on Thursday.
FILE PHOTO: The skyline with its financial district is photographed during sunset as the spread of the coronavirus disease (COVID-19) continues in Frankfurt, Germany, November 1, 2020, REUTERS/Kai Pfaffenbach/File Photo
Net assets in ESG funds grew to 1.2 trillion euros ($1.43 trillion) in 2020, up 37.1% from the prior year and compared to a 4.8% increase for non-ESG funds.
The surge in ESG assets has been driven by stimulus-driven market recovery and investors increasingly looking for resilient investments, as well as a push from governments to encourage environmentally-friendly investments.
All three KPIs:
non-financial undertakings shall apply their best judgement in splitting turnover between CapEx and OpEx across their activities, but while doing this shall avoid (1) unduly inflating the proportion of the Activities and (2) double-counting; and
the Commission shall establish requirements for KPIs to be accompanied by information on how the KPIs were prepared and what they cover;
(ii)
Turnover KPI:
non-financial undertakings should use the definition of net turnover in Article 2(5) of the Accounting Directive as the reference point when calculating their turnover;
(iii)
CapEx should be defined as:
where IFRS is applied: the costs accounted for based on specific paragraphs of IAS 16, IAS 38 and IAS 40-41 and IFRS 16; and