In the midst of a climate emergency and growing social inequality, pressure is mounting on companies and governments to move toward decarbonisation and social justice. One would expect sustainable investing to rise to the challenge.
But a closer look at European funds under the Sustainable Finance Disclosure Regulation (SFDR) tells a different story: only 5% of financial products are truly impact-driven. These are the so-called Article 9 funds.
What are Articles 6, 8 and 9 of the SFDR?
Since 2021, the SFDR regulation has required asset managers to classify their funds into three categories:
🔹 Article 6
Funds that do not meaningfully integrate sustainability. They represent around 32% of the European market.
🔹 Article 8
Funds that promote environmental or social characteristics but without a clearly defined sustainable objective. These dominate the landscape, accounting for 63%.
🔹 Article 9
Funds with clear and measurable sustainable investment objectives, designed to generate tangible positive impact. These make up the remaining 5%.
This last category is the most demanding — and also the most rare.
Article 9 funds with a transformational approach
Not all Article 9 funds are created equal. While regulation requires them to pursue sustainability goals, only a few play an active role in transforming the companies they invest in.
Some go beyond simply selecting “good companies”. They include engagement or impact structures that strategically push companies toward more ambitious sustainability models.
Leading examples:
| Fund | Manager | Impact / engagement structure | Type of influence |
|---|---|---|---|
| SDG Engagement Equity Fund | Federated Hermes | In-house engagement team aligned with SDGs | Actively dialogues with companies to improve ESG and social practices |
| Secular Trends Fund | Pury Pictet Turrettini | Independent engagement committee (with ImpactCo) | Strategic influence to align business models with sustainability megatrends |
| Triodos Global Equities Impact Fund | Triodos IM | Internal impact team + strict exclusions + progress reporting | Direct interaction with companies to ensure lasting impact and address controversies |
| M&G Positive Impact Fund | M&G Investments | External impact committee with independent experts | Ongoing review of SDG alignment and pre/post impact assessments |
| NN (L) Climate & Environment | NN Investment Partners | Stewardship team + clear voting policies | Active participation in shareholder meetings and climate-related resolutions |
| Nordea Global Climate and Environment Fund | Nordea AM | Dedicated engagement centre + regular dialogue | Pushes for climate transition plans and net-zero targets |
| AXA ACT Clean Economy Fund | AXA IM | Dedicated active ownership team | Influences corporate environmental policies and promotes climate disclosures (TCFD, SBTi) |
💡 A standout case: “Secular Trends” by Pury Pictet Turrettini
One of the most innovative funds is Secular Trends, managed by Geneva-based boutique Pury Pictet Turrettini. This fund aligns with megatrends such as energy transition, global health, and inclusive digitalisation.
What makes it stand out is its independent engagement committee, which includes our president Ángel Bonet. The committee analyses, supports and challenges portfolio companies to speed up their contribution to the Sustainable Development Goals (SDGs).
Moreover, Impactco is a strategic ally in this transformation journey.
“Good ESG scores aren’t enough. Our goal is to help companies shift toward sustainable models that stand the test of time and create value for both the planet and society,” says a committee member from Geneva.
Measuring ESG or changing the world?
A growing criticism in the financial world is that many “sustainable” funds focus only on measuring ESG indicators. But measuring is not transforming.
According to an analysis of Article 9 portfolios, 20% of holdings had some ESG-related controversy, casting doubt on whether they truly uphold the spirit of the regulation.
What’s needed is a different approach:
✅ Clear intention to generate real impact
✅ Transparent metrics
✅ Active engagement that leads to tangible change
What’s next?
As European authorities review the standards to prevent greenwashing and strengthen oversight of mislabelled funds, the key lies in empowering true change-makers: asset managers that embed purpose and sustainability at their core.
The Secular Trends Fund, with its independent committee and alliance with ImpactCo, represents a new generation of investing — one that doesn’t just avoid harm but strives to generate net positive value.
Investing in these funds isn’t just a financial decision. It’s a bet on the world we want to build — and on the private sector’s power to be a driver of progress, if well managed.