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By Raphaël BETTI, EY Luxembourg Assurance Partner, Climate Change and Sustainability Services Leader Laurent CAPOLAGHI, EY Luxembourg Partner, Private Equity Leader
Past years have witnessed an increasing focus on SFDR Art 8 and 9 Funds, both now accounting for almost two-thirds of the European private equity and venture capital funds as per Morningstar, fueled by an increasing investor appetite for sustainable investment strategies combined with the increasing European regulatory pressure. While this can be perceived as a positive development of impact investing, it also constitutes a double-edged sword due to the inherent reputational and financial risk linked to the risk of greenwashing in the absence of adequate independent review. Therefore...
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