One of the action areas of the UN Global Sustainable Finance Observatory (GSFO) is to conduct critical assessments of sustainability-labeled financial products on the global capital market, and to award best performers.
Sustainable funds, which integrate environmental, social and governance (ESG) considerations and the Sustainable Development Goals (SDGs) into their asset allocation process, have grown rapidly in number, variety and size. UNCTAD estimates that, today, there are nearly 4,000 such funds, with assets under management of about $3 trillion. These sustainability-oriented funds have become important instruments for institutional investors to invest in sustainable development, channeling billions of dollars into key sectors that are critical for achieving the SDGs.
Despite their rapid growth, the total assets of sustainable funds still account for only 3% of the entire fund universe, and most of them are domiciled and invested in developed economies. Meanwhile, a lack of transparency and inconsistency of standards around sustainability labelling have given rise to credibility issues and green washing concerns.
To encourage the development of high-quality, high-impact sustainable funds, and to encourage the channeling of funds to SDG-related sectors and to developing countries, the UNCTAD sustainable fund awards recognize outstanding funds that demonstrate the highest standards of sustainability and impact, while outperforming their respective financial performance benchmarks.
Winners:
- Fondita Sustainable Europe B
- Green Benefit Global Impact Fund
- Montpensier Finance M Climate Solutions C
- Penghua Environmental Protection Industry Investment Fund