FT: Morningstar Ethical Rating Could Cost Funds Billions

Fiona Reynolds, managing director at the Principles for Responsible Investment, a UN-backed group that promotes responsible investing, told the FT: “For too long, managers have been sidestepping ESG, often claiming that it was not part of their fiduciary duty. The Morningstar ratings mean managers can no longer ignore ESG issues.”

Speaking to Blue & Green, John Fleetwood of 3D Investing, said: “This is excellent.  It shows the power of a rating system to change practice  – to reverse the usual race to the bottom and make it a race to the top.”