Fund Managers Poised to Embark on ESG Purge Sparked by EU Rules

New rules limiting how freely asset managers can attach the ESG label to funds sold in Europe promise to trigger a widespread purge across the industry, according to a fresh analysis by Morningstar Sustainalytics.

Roughly 4,300 funds domiciled in the European Union that currently claim to pursue environmental, social or governance goals, or that carry similar sustainability-related labels, are potentially affected by new guidelines unveiled in May by the European Securities and Markets Authority, Morningstar Sustainalytics said on Wednesday.