ESG word of the year: Transition

When it comes to thinking about ESG investment last year, it feels characterised by the EU's Sustainable Finance Disclosure Regulation (SFDR). As funds adapted to this classification system over the course of the year, the shortcomings of the new regulation became apparent and resulted in multifaceted criticism. One of the main issues with the SFDR is that it fails to account for ‘transitional' companies - a phrase which is fast becoming the new buzzword in ESG. In recent months, investors have placed greater importance on companies that are transitioning towards net-zero ambitions, as o...