A new study has found serious disclosure flaws in the European ESG Template (EET), with more than one in five Article 9 funds underreporting their exposure to fossil fuels.
In an attempt to evaluate the EET, an industry tool for ESG disclosure in financial markets, Clarity AI found that the level of disclosure in EETs was very low. In the study's sample of 830 Article 8 funds, only 5% disclosed if they invest in firms that violate UN Global Compact principles or OECD guidelines for multinational enterprises, while only 10% of funds disclosed the share of their investments that were exposed to fossil fuels. HSBC under fire for $340m loan to energy firm involved in coal mine expansion When analysing the funds that reported this data, the study found...
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