How Sustainable is Your Fund?

Many funds badge themselves as being sustainable or ESG-focused, but how do they compare to their peers? Investors must alwaysl looks under the bonnet

Annalisa Esposito 24 April, 2020 | 11:32AM

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Funds categorised as ESG or Sustainable have wide and varied approaches to investment and can be difficult to compare. Morningstar's definitions of the main types can be found here

But judging how sustainable a fund truly is can be difficult; those perceived to fall short of the mark are often accused of greenwashing, purposely making themselves sound more ESG-focused than they really are. At a company level this could see businesses exaggerating their energy-saving credentials or use of recycle materials in their products to win over customers. 

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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