At the end of June 2023, the aggregate global value of financial products investments in accordance with sustainability criteria stood at approx. USD 2.8 trillion; approximately three-quarters of all such investment funds – 5,490 in absolute terms – accounting for 84% of fund volume are managed by European providers. These findings are from the latest market report of the financial information and analysis company MorningStar[1]. Sustainable investments have been the most strongly in demand financial products in Europe for a number of years. In regulatory terms, there is still movement in the market, there are a range of labels and significant reclassifications of funds. In Europe alone in 2022, for example, approximately 300 funds were downgraded from a sustainability perspective. The new edition of the FMA’s publication series “Let’s talk about money” explains and sets out in simple language about the sustainability criteria used, what the classification of a fund means, where investors can find relevant information and what obligations exist for financial service providers when offering sustainable products.
Sustainability involves transparent information
For example, sustainable investment funds are required to inform about how as well as which sustainability risks are taken into account by the company prior to the conclusion of the contract, about the impact of sustainability factors on returns and about how sustainably targets are intended to be reached. The sustainability features of the financial products are to be set out in regular reporting, the company’s investment strategy in this regard explained, and the methods used for financial valuation presented.
Investors can find this publication on the FMA website at:
Sustainable Financial Products – Let’s talk about money
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)676 88 249 516
+43/(0)1 / 24959-6006
[1] MorningStar: “Global Sustainable Funds Flows: Q2 2023 in Review. Challenging market conditions continue to weigh on investor sentiment and flows into the space.”