Which of the following parties is most likely to help investors identify the extent and depth to which investment funds integrate ESG?
Correct Answer: A
Fund labellers are most likely to help investors identify the extent and depth to which investment funds integrate ESG. Fund labellers provide certifications or labels that signify a fund's adherence to specific ESG criteria, making it easier for investors to identify and compare funds based on their ESG integration.
* Role of fund labellers: Organizations that provide ESG labels or certifications evaluate funds against defined ESG standards. These labels serve as a signal to investors that the fund meets certain ESG criteria, facilitating informed investment decisions.
* Comparison with other parties:
* Investment platforms (B): These platforms facilitate access to a wide range of investment products but may not provide detailed ESG integration assessments.
* Investment consultants (C): Consultants can offer tailored advice on ESG integration but may not provide the same standardized and widely recognized certification as fund labellers.
References:
* CFA ESG Investing Principles
* Information on ESG fund labelling organizations such as the EU Ecolabel, Morningstar, and MSCI