FNG is experiencing a surge in consumer interest or request.
In the ever-evolving world of sustainable investing, the Forum for Sustainable Investments (FNG) is leading the charge with its rigorous FNG sustainability seal. This seal, designed to prevent greenwashing of conventional products, is gaining traction among fund providers as the demand for transparent and credible Environmental, Social, and Governance (ESG) labelling grows.
The review process for the FNG seal is meticulous, with external experts from prestigious institutions such as the University of Hamburg and the University of Kassel, alongside a committee assembled by FNG, conducting the evaluations. This process ensures that the FNG seal provides "external and independent review of the content and quality" of sustainable investments.
Fund providers are required to categorize their products into one of three sustainability categories: Article 6 (funds that do not consider sustainability), Article 8 (funds with a sustainability feature), and Article 9 (funds pursuing a specific sustainability goal), according to the European disclosure regulation. However, Roland Kölsch, CEO of QNG, a subsidiary of FNG responsible for the FNG seal, criticises the lack of "scientifically based guidance" in the process of many existing, conventional products becoming sustainability funds.
The FNG seal aims to address this issue by providing "scientifically based guidance for sustainable investments" and helping investors, insurers, fund-of-fund managers, foundations, and other institutional investors filter out well-made offers. The seal is applicable globally, not just within the EU, with inquiries coming from 14 countries worldwide, including those outside the EU.
The self-declaration of sustainability categorization will be reviewed again next year, providing an opportunity for continuous improvement and transparency in the sustainable investment sector. As of 2025, a total of 102 fund houses have applied for an FNG seal, representing a 60% increase compared to the entire previous year, demonstrating the growing interest in this certification.
The external review process for these applications involves fund providers submitting their sustainability products for evaluation by independent, accredited third-party reviewers. These reviewers assess fund compliance with the FNG’s transparency and sustainability criteria, which covers factors like ESG integration, shareholder engagement, and exclusion policies. Only after successful external validation can a fund be awarded the FNG sustainability seal.
This rigorous process ensures credibility and comparability of the sustainability claims by fund providers, contributing significantly to the growth of trust in sustainable investing. As the world continues to grapple with pressing environmental and social issues, the role of the FNG sustainability seal in promoting transparency and accountability in the investment industry is more crucial than ever.
- The FNG sustainability seal, with its external and independent review of the content and quality of sustainable investments, provides scientifically based guidance for investors, insurers, and other institutional investors, helping them filter out well-made offers in the field of finance and business.
- As the demand for transparent and credible Environmental, Social, and Governance (ESG) labelling grows, fund providers are increasingly seeking the FNG sustainability seal, reflecting their commitment to invest responsibly and contribute to the solution of pressing environmental and social issues, incorporating sustainability in their finance and business operations.
