Rapid growth of sustainable investment poses challenges for fund boards

Significant gaps in knowledge

The rapid evolution of sustainable investment and increasing regulatory scrutiny is posing governance challenges for fund boards, a new report by the First Sentier MUFG Investment Institute has found.

The report, researched and authored by the Fund Boards Council, revealed that while fund boards are facing an increasing level of regulatory scrutiny, they lack clarity from regulators on their fund board oversight responsibilities in relation to sustainable investment.  Fund boards across the UK, Ireland, Luxembourg, Japan, Hong Kong and Australia said the variation in definitions of sustainability, greenwashing and the evolving regulatory requirements are leaving them questioning the expertise they need to ensure robust fund oversight.  Morningstar: ESG portfolio implementation stil...