Tracing its roots to the European Transparency Guidelines unveiled in 2004, the European SRI Transparency Code, first launched in May 2008, primarily aims at increasing accountability and clarity of SRI practices for European investors.
The Transparency Code is driven by a fundamental principle: Asset manager signatories should be open and honest, and disclose accurate, adequate and timely information to enable stakeholders, in particular retail investors, to understand the policies and practices of a given SRI fund. The Code has been designed to cover a range of asset classes and it focuses on Sustainable and Responsible Investment funds distributed publicly in Europe.
In June 2016, there were 1,138 green, social and ethical funds domiciled in Europe. For the same period, there were over 700 funds submitted to the Transparency Code. The Code has also been made a mandatory requirement by a number of national SRI labels or trade associations in Europe. In 2018, the Transparency Code has been updated with the aim to reflect the most relevant practices in Sustainable and Responsible Investment and Sustainable Finance.