Latest news with #iSharesMSCIESGScreenedUCITS
Yahoo
4 days ago
- Business
- Yahoo
150 ESG ETFs Renamed in Response to New ESMA Naming Rules
A vast number of ESG ETFs and others removed sustainability-related terms from their names ahead of the European Securities and Markets Authority (ESMA) fund naming guidelines deadline on May 21. A report by independent financial advocacy group Finanzwende, alongside Urgewald and Facing Finance stressed that the simple renaming of funds is evidence of fund promoters 'evading responsibility through semantic tricks.' The report analyzed 827 ETFs from a total of 15,222 funds. Of these ETFs, 529 included a term in their name suggesting alignment with the Paris-Aligned Benchmark (PAB) criteria, which means fossil fuel companies should be excluded. Since ESMA published the fund-naming guidelines in May 2024, the research found 150 of these products have either removed or replaced sustainability-related terms. Of the 150 ETFs that removed the term, 113 replaced it with a term that does not require the exclusion of fossil fuel companies and 37 removed the term entirely. Authors of the recent report warned the previous misalignment of fund names and corresponding baskets has created distrust within the industry. Alison Schultz, consultant at Finanzwende said, "If a fund calls itself 'sustainable' while simultaneously investing in fossil fuel expansion, that is simply misleading. Such products should have been sanctioned long ago. The financial supervisory authority BaFin is called upon to continue to take consistent action in this regard." Meanwhile, some professional investors have taken a more sanguine view. Paris Jordan, head of Responsible Investing at Charles Stanley previously told ETF Stream, "At a broad level, this is a good step. It is positive because it means we will finally be speaking the same language and until now, we have not … in the long run, [the fund-naming guidelines] will help us move forward in the right direction." ETF Stream has reported a regular cadence of issuers cutting the term out of their name in favor of more ambiguous terms, such as "scored and screened." The largest relabelling sweep came from BlackRock, which removed the "ESG" label from its iShares MSCI ESG Screened UCITS ETF range and BSF Systematic ESG World Equity Fund, which contains 56 strategies housing $51 billion of assets under management. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved
Yahoo
20-03-2025
- Business
- Yahoo
BlackRock Removes ESG from European Funds Worth $51B
BlackRock Inc. (BLK) has renamed or changed the methodology of 135 ETFs and funds in response to a 'client-informed approach' to European Securities and Markets Authority (ESMA) fund-naming guidelines. The changes will see the world's largest asset manager remove the "ESG" moniker from its iShares MSCI ESG Screened UCITS ETF range and BSF Systematic ESG World Equity Fund, comprising 51 strategies housing $51 billion of assets under management (AUM). The decision to remove ESG from its "light green" offering was made in response to client feedback expressing a preference for changing the name rather than the methodology of the strategies. The ETF range will continue to be classified Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Elsewhere, its "middling" green suite of 18 strategies housing $42 billion of AUM will signal clearer alignment with climate transition objectives. The MSCI ESG enhanced ETF range will feature the Climate Transition Benchmark (CTB) acronym, and disclosure language will be updated for the BGF European Equity Transition Fund. Finally, 60 "dark green" strategies housing $92 billion of AUM will begin implementing Paris Aligned Benchmark (PAB) exclusions. The SFDR Article 9 products that will begin including PAB criteria are the BGF ESG Multi-Asset Fund and the iShares MSCI SRI UCITS ETF range. No changes will be made to 17 funds in BlackRock's sustainable range, including its PAB suite housing just under $5 billion. The updates precede ESMA's naming rules coming into effect on May 21, requiring EU funds to fulfill additional criteria to include ESG and other sustainability-related terms in their names. In a note to clients seen by ETF Stream, the firm said, 'To adapt to these changes and refresh our European product range, we consulted with a significant number of clients, including large distributors, product selectors and portfolio managers, to seek their views and understand their preferences. 'Based on this feedback, we have focused on providing clients with transparency and, where relevant, retaining investment methodologies consistent with their preferences.' The updates coincide with similar moves by other fund promoters in Europe. MSCI found that by the end of February, the number of sustainability-named funds had already fallen around 20% since ESMA's naming guidelines were published last May. Around 84% of Europe's sustainable fund roster is impacted based on a "stringent" interpretation of the guidelines, according to research by ISS STOXX. While asset managers have updated product methodologies where feasible, the direction of travel to-date expresses a preference for renaming rather than overhauling the strategies of "light green" ESG offerings. BNP Paribas Asset Management removed "ESG" from one of its S&P 500 ETFs following similar moves by DWS and State Street Global Advisors (SSGA). Elsewhere, UBS Asset Management and DWS rebranded dozens of ETFs after MSCI renamed over 100 ESG indices. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
18-03-2025
- Business
- Yahoo
BlackRock Removes ESG from European Funds Worth $51B
BlackRock Inc. (BLK) has renamed or changed the methodology of 135 ETFs and funds in response to a 'client-informed approach' to European Securities and Markets Authority (ESMA) fund-naming guidelines. The changes will see the world's largest asset manager remove the "ESG" moniker from its iShares MSCI ESG Screened UCITS ETF range and BSF Systematic ESG World Equity Fund, comprising 51 strategies housing $51 billion of assets under management (AUM). The decision to remove ESG from its "light green" offering was made in response to client feedback expressing a preference for changing the name rather than the methodology of the strategies. The ETF range will continue to be classified Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Elsewhere, its "middling" green suite of 18 strategies housing $42 billion of AUM will signal clearer alignment with climate transition objectives. The MSCI ESG enhanced ETF range will feature the Climate Transition Benchmark (CTB) acronym, and disclosure language will be updated for the BGF European Equity Transition Fund. Finally, 60 "dark green" strategies housing $92 billion of AUM will begin implementing Paris Aligned Benchmark (PAB) exclusions. The SFDR Article 9 products that will begin including PAB criteria are the BGF ESG Multi-Asset Fund and the iShares MSCI SRI UCITS ETF range. No changes will be made to 17 funds in BlackRock's sustainable range, including its PAB suite housing just under $5 billion. The updates precede ESMA's naming rules coming into effect on May 21, requiring EU funds to fulfill additional criteria to include ESG and other sustainability-related terms in their names. In a note to clients seen by ETF Stream, the firm said, 'To adapt to these changes and refresh our European product range, we consulted with a significant number of clients, including large distributors, product selectors and portfolio managers, to seek their views and understand their preferences. 'Based on this feedback, we have focused on providing clients with transparency and, where relevant, retaining investment methodologies consistent with their preferences.' The updates coincide with similar moves by other fund promoters in Europe. MSCI found that by the end of February, the number of sustainability-named funds had already fallen around 20% since ESMA's naming guidelines were published last May. Around 84% of Europe's sustainable fund roster is impacted based on a "stringent" interpretation of the guidelines, according to research by ISS STOXX. While asset managers have updated product methodologies where feasible, the direction of travel to-date expresses a preference for renaming rather than overhauling the strategies of "light green" ESG offerings. BNP Paribas Asset Management removed "ESG" from one of its S&P 500 ETFs following similar moves by DWS and State Street Global Advisors (SSGA). Elsewhere, UBS Asset Management and DWS rebranded dozens of ETFs after MSCI renamed over 100 ESG indices. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved
