Greenlabelling: How valuable is the SFDR Art 9 label?

Bernd Scherer () and Milot Hasaj ()
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Bernd Scherer: EDHEC Risk Institute
Milot Hasaj: Hauck Aufhäuser Lampe Privatbank AG

Journal of Asset Management, 2023, vol. 24, issue 7, No 3, 546 pages

Abstract: Abstract Do SFDR Art 9 funds induce more significant inflows than Art 8 funds? Using the industry-wide reclassification of SFDR labels in 2022 as a natural experiment, we find statistical evidence that SFDR labels matter in attracting flows. We see a substantial and statistically significant effect of, on average − 10.27% reduced flows in the immediate month following reclassification. After this adjustment, there is no difference in flows between old and new Art 8 funds (i.e. those recently reclassified from Art 9). Virtually all funds became Art 8. Our results confirm the regulator's view that SFDR labels help to channel capital flows into greener funds. They also support the commercial hopes of the asset management industry for attracting flows into ESG investment products.

Keywords: SFDR reclassification; Fund flows; Staggered intervention analysis (search for similar items in EconPapers)
JEL-codes: G11 G18 G23 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41260-023-00319-y

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