The ambiguity of ESG ratings has come under pressure from the European Fund and Asset Management Association (EFAMA) after it found a low correlation between different companies’ ratings.
In the latest instalment of its Market Insights series, the EFAMA analysed the ESG ratings provided by Morningstar Direct and Refinitiv for Article 8 and 9 funds and found that although there was a positive correlation, "it is quite small" and investors should use the ratings "with caution". EFAMA said this study was motivated by the rapid development of the ESG ratings market against the backdrop of a growing demand for Article 8 and 9 funds from investors. In the research, EFAMA analysed and compared the ESG ratings from Refinitiv and Morningstar Article 8 and 9 funds and evaluated ...
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