Article 6 fund

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Under SFDR, an Article 6 Fund is one that does not integrate any kind of sustainability into the investment process and could include stocks currently excluded by ESG funds – such as tobacco companies or thermal coal producers. While these will be allowed to continue to be sold in the EU, provided they are clearly labelled as non-sustainable, they may face considerable marketing difficulties when matched against more sustainable funds.

Links

IISD: The Paris Agreement’s New Article 6 Rules