The German fund association BVI has welcomed the action plan of the European Commission for the financing of sustainable growth with few restrictions.
Thomas Richter, chief executive of the BVI said: “Most of the suggestions in the action plan will have our full support, such as the creation of an ESG criteria catalogue (taxonomy) or the integration of these criteria in ratings and research. We also welcome the idea and more transparency on how companies set sustainability criteria to report.”
The BVI is committed to the creation of a catalogue of criteria for ESG factors, on the basis of which companies report consistently. Only then can investors and portfolio managers compare ESG risks to individual assets.
However, the BVI critically assesses the mission of the European Commission to the European regulator ESMA to identify funds that are geared only to short-term profits.
“Active fund management means analysing securities and buying or selling them accordingly. If active fund managers are too passive, they will be accused of sticking to the index. If they are too active, they will be accused of short-term investment strategy. The border can not be drawn by law for all funds, but will depend on the investment strategy of each fund”, said Richter.
The BVI repeats its warning to be careful in the design the fiduciary duties of asset managers. ESG standards for investment strategies may not be anchored in regulatory. The investors must continue to be free to decide whether and to what extent they Consider sustainability aspects in their plants.