(Bloomberg) -- Investors looking for responsible funds can get lost in a forest of broad terms -- ethical, green, impact and sustainable, among others. Now the industry group for U.K. asset managers is trying to clear things up.
The Investment Association, whose members oversee more than 7.7 trillion pounds ($9.9 trillion) in assets, has come up with easy-to-understand labels that will help investors navigate the proliferating range of funds that claim to use environmental, social and governance criteria, or ESG for short.
The London-based lobbying group will ask its members next year to identify funds that should be classified using labels such as “impact investing” and “ESG integration,” according to a report published on Monday. In preparing the report, the IA consulted with asset managers including Deutsche Bank AG's DWS Group, Invesco Ltd. and Standard Life Aberdeen Plc.
“One significant barrier to the growth of responsible investment has been the lack of a common language and framework that describes and categorizes these approaches and products,” Chris Cummings, the IA's chief executive officer, said in a statement. “The investment management industry can now give its customers a clear picture of the opportunities available to them and the confidence that their chosen product matches their expectations.”
To contact the reporter on this story: Lucca de Paoli in London at gdepaoli1@bloomberg.net
To contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Patrick Henry, Suzy Waite
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