The November 2022 Aite-Novarica Group report examines ESG fund management regulation, focusing on growing scrutiny of greenwashing. Many buy-side firms view greenwashing as widespread, with SFDR classifications, especially Article 8 funds, often lacking detail. Compliance with evolving rules like the U.K.’s SDR is expected to be costly, prompting asset managers to strengthen disclosure and verification processes. While regulations aim to improve transparency and investor confidence, the industry faces operational, reporting, and cost challenges in aligning investment strategies with authentic ESG commitments.

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