According to research conducted by German consumer organisation Stiftung Warentest and the Bremen Centre for Consumer Protection, the majority of sustainable investment funds currently offered to German retail investors do not necessarily comply with sustainability standards.
The research, which included 34 equity funds and 12 bond funds, including two government bond funds, revealed that 39 of these sustainable funds do not exclude investments in the Coal and Oil industry. Seven funds were unable to guarantee that they are not investing in tanks or weapons, five funds are not explicitly rejecting child labour.
The research also revealed that many funds also have an insufficient level of transparency, only 13 of 46 funds were rated as very transparent, 20 funds were rated as lacking transparency.
The full report, which is published in German, can be accessed here.