1Īrticle 9 climate-branded funds present four times higher alignment with the EU taxonomy than the overall sample average, with 15% of revenues classified as green.

Only 7% of the 31,000 equity funds analyzed have more than 10% green revenues, as defined in the EU taxonomy. Globally, 3.6% of revenues can be considered green (“green revenues”) – that is, they contribute to mitigating climate change. In a whitepaper titled “EU Taxonomy: Using Tech to Analyze ‘Green’ Fund Performance,” Clarity AI analyzed an investable universe of 31,000 equity funds on how these products perform against new EU Taxonomy requirements and assessed the common traits across funds, which are often branded in some way as “green.” The analysis shows that: Under the Sustainability Finance Disclosure Regulation (or SFDR), investors need to report the EU Taxonomy alignment as part of the sustainability profile of funds, which need to be classified into one of three categories:Īrticle 8: funds that promote sustainable characteristics but not as an overarching objectiveĪrticle 9: funds that have been specifically created to address sustainability goals

Analysis by Clarity AI, the market-leading, global sustainability technology platform, reveals significant differences between fund revenues aligned with green – and EU Taxonomy related – objectives across different types of sustainable investment products in the market today. NEW YORK–(BUSINESS WIRE)– #ESG–The EU Taxonomy aims to align all market stakeholders on what is considered sustainable in the context of the EU, but investors need greater transparency on just how green the funds they are buying really are. The EU Taxonomy aims to align market participants on definitions of sustainability, but investors need to dig deeper to know just how “green” a fund really is

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