Sustainable finance: Great reclassification is coming

Sustainable finance: ‘Great Reclassification’ is coming under SFDR

The growing complexity of Europe’s sustainable finance framework and a lack of clear guidance from EU supervisors is leading to a fragmented application of the benchmark EU regulation that determines which investment funds are sustainable and which are not. As a result, the sector is facing what Morningstar's top ESG expert calls “The Great Reclassification”.

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