European ESG funds have sold off some of their Adani Group holdings, with the number listed as including the embattled Indian conglomerate down by 6% over the past two weeks.
Shares bearing the Adani name now appear in about 480 so-called Article 8 funds — entities promising to promote environmental, social and governance goals under European Union rules, according to data compiled by Bloomberg. That’s down from more than 500 in mid-February.
Some investors have decided against holding shares in Adani companies following a report from US shortseller Hindenburg Research in late January accusing the group of accounting fraud and stock manipulation — claims Adani denied.
Norway’s largest pension fund, KLP, dumped its entire holding of shares in Adani Green Energy Ltd. after the Hindenburg report was published.
Still, the selloff in the Adani Group has been somewhat tempered as a number of investors and the ESG ratings agencies behind indexes tracked by passive funds continue to monitor the results of any regulatory probes.
About 18% of the existing Article 8 exposures is via direct holdings, while the rest are indirect, for example through funds of funds.
