There are three types of ESG funds outlined in the disclosure proposal with varying requirements:
- Integration funds, which integrate ESG factors alongside non-ESG factors in investment decisions, would be required to describe how ESG factors are incorporated into their investment process.
- ESG-focused funds, for which ESG factors are a significant or main consideration, would be required to provide detailed disclosure, including a standardized ESG strategy overview table.
- Impact funds, a subset of ESG-focused funds that seek to achieve a particular ESG impact, would be required to disclose how they measure progress on their objectives.
