Towards Sustainability completes full re-audit of labelled products

Highlights

• 82% of label holders renewed the label for the large majority of their products. The number of labelled products, however, fell considerably from 703 to 477 products between the end of 2025 and the end of Q2 2026 (-32%).
• The main reasons behind this drop are a combination of a significant decrease in investor demand, a general  deprioritization of ESG, and some asset managers’ changed position on specific topics such as weapons.
• As at 30 June 2026, more than 420 billion euro are managed in line with the criteria of the Towards Sustainability Quality Standard.

At the end of Q2 2026, Towards Sustainability has completed the full re-audit of all labelled products. This means that label holders had to re-apply for all of their products. The results show that 82% of label holders renewed the large majority of their products. This is an encouraging sign of enduring commitment to sustainability from the label-holding community.

Moreover, twelve new initial applications were submitted, which demonstrates that the label continues to attract new participants and is viewed as a mark of quality and credibility.

Out of the 703 labelled products (end of 2025), 226 no longer carry the label. The main reasons behind this drop are a combination of a significant decrease in investor demand, a general deprioritization of ESG and a change in some asset managers' position on specific topics such as investment in the weapons industry, resulting in investment policies no longer aligning with the label’s expectations. Other reasons include more technical or administrative motives.

Label evaluation and Quality Standard revision exercise

Against the backdrop of ESG deprioritization originating in the US but also spreading to Europe, Towards Sustainability will perform an evaluation of the label and the Quality Standard. This will also be an opportunity to assess the label’s alignment with the upcoming revision of the Sustainable Finance Disclosure Regulation (SFDR2).

The evaluation is projected to run from September 2026 to April 2027, with the aim to publish the conclusions by June 2027. The exercise will be conducted in close consultation with portfolio managers and other stakeholders  –including academics, civil society, policymakers– drawing on their insights and experience.

The criteria of the label’s Quality Standard are regularly reviewed and strengthened to keep pace with society's changing needs, investor expectations, scientific knowledge, data availability and the regulatory framework. The last revision process ran from November 2022 to June 2023 and came into force in January 2024.