Preqin ESG Solutions 18 ESG Fund Labels If you are tasked with ESG funds in the market are identi昀椀ed – and tagged – creating a new fund, according to seven common types: ESG Fund Labels enables you to benchmark your • ESG Integration: Funds that consider environmental, social o昀昀ering against the and governance principles in their investment strategies. competition, so you These may encompass ESG as a whole or the E, S or G can better position the individually, with 昀椀nancial returns remaining the funds’ new fund in market primary directive. and strengthen your • Impact: Funds focused on generating positive social or fundraising. environmental e昀昀ects. These funds are generally values- driven and pursue societal or environmental objectives If you are an institutional complementary to 昀椀nancial performance. investor, this component enables you to discover • SFDR Article 8: Funds de昀椀ned by the European Union's strategies and investment Sustainable Finance Disclosure Regulation (SFDR) as funds that align with your promoting environmental and/or social matters without ESG mandate. having sustainable investment as its primary objective (e.g. not impact funds). What quali昀椀es as promotion: • Any disclosure or provision of information and an “impression” that the investments pursued by a fund also consider speci昀椀c environmental or social characteristics • Principal Adverse Sustainability Indicators (PASIs) integrated into investment decisions) integrated into investment decisions Other criteria: 1. A fund must be subject to binding criteria in relation to its environmental and/or social characteristics; mere integration of sustainability risks is not su昀케cient 2. Investee companies must have good governance practices ↗ Back to Contents