Less Greenwashing: Sustainable Funds "Greener" According to AK Test

It showed less greenwashing than in previous years and that sustainable funds are indeed becoming greener, reported the interest group in a press release on Wednesday. All 256 funds met the sustainability criteria, with the evaluation covering 23 main and 122 subcategories.

Since 2021, funds with a sustainability reference must be appropriately labeled, but there was a lot of room for so-called greenwashing. However, a new guideline from the European Securities and Markets Authority (ESMA) has now led to more transparency. From May 2025, it applies across Europe: If a fund's name includes terms like ESG (Environmental, Social, Governance), sustainable, or "green," at least 80 percent of the fund's assets must actually be invested in sustainable investments. This has an effect - according to the AK analysis, funds with ESG references in their names now completely refrain from investing in coal, oil and gas, or armaments.

New Leader in the AK Sustainability Ranking

In the AK ranking, the fund "Raiffeisen-Nachhaltigkeit-Momentum" replaced the previous leader "ERSTE WWF Stock Environment." Article-9 funds - the highest category - pursue specific sustainability goals, while Article-8 funds consider sustainability aspects without making them the sole objective. Eight of the top ten funds in the AK ranking additionally carry the Austrian eco-label for sustainable financial products (UZ49).

However, the AK cautions that funds without the ESG term in their names can still classify themselves as sustainable (Article 8) despite the new rules, even if they invest in fossil energy, armaments, or food companies like Nestlé. The interest group advises not to rely solely on an Article-8 classification and to choose funds classified as Article 9 whenever possible. It is advisable to opt for funds with ESG terms in their names and additionally pay attention to the Austrian eco-label.

(APA/Red)

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