Monthly fund report now includes ESG metrics

Investor interest in responsible investing has been growing for a long time. Finance Finland’s monthly report on investment funds domiciled in Finland now includes ESG ratings, which indicate how well the fund provides sustainability information.

The sustainability of funds can be evaluated and measured in many ways. Jari Virta, head of asset and fund management at FFI, says many commercial service providers perform various sustainability calculations and comparisons on funds. New EU regulation on sustainable finance and the sustainability assessment of investment targets is also underway. The monthly reports, commissioned by FFI and produced by Investment Research Finland, now include fund-specific ESG coverage and ESG quality scores based on the MSCI ESG Fund Ratings methodology.

The ESG quality score reflects the fund’s ability to manage medium and long-term risks and opportunities related to environmental, social and governance matters. The score is provided on a scale of 0 to 10, with 10 being the highest possible fund score.

”We included ESG information in the fund report in response to the growing demand for information. However, it’s good to keep in mind that no harmonised regulation or guidelines exist yet. The figures from different service providers may therefore vary between funds, companies and markets”, Virta notes.

The monthly Mutual Fund Report aggregates statistics on Finnish domiciled funds’ subscriptions and withdrawals as well as profit and risk figures. The report is available, free of charge, on Investment Research Finland’s website. The reports have been published since 2004.

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Financial and Prudential Regulation

Mariia Somerla

Head of Financial Regulation and Analysis