Faire Fonds Database
The Faire Fonds Database is a screening tool from Facing Finance and urgewald that analyses thousands of retail funds for controversial holdings. It identifies exposure to sectors like fossil fuels and weapons while highlighting potential greenwashing in ESG-labelled products.
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OVERVIEW
The Faire Fonds Database is an online screening tool designed to evaluate the social and ecological performance of retail investment funds marketed in Germany. Its primary purpose is to provide transparency regarding the holdings of both conventional and ESG-labelled funds, identifying exposure to controversial business practices. Finance professionals can use the database to assist with greenwashing risk mitigation and to verify the alignment of investment products with specific ethical or environmental standards.
Organisation behind the tool
The database is a joint initiative developed and maintained by the non-governmental organisations Facing Finance and urgewald.
What the tool does
The tool analyses the portfolios of thousands of mutual funds to identify investments in companies involved in controversial areas. Key features include:
- Screening of approximately 2,900 investment funds, including those classified under Article 8 and Article 9 of the SFDR.
- Analysis of corporate involvement in sectors such as fossil fuels, weapons manufacturing, and tobacco.
- Identification of violations of international standards regarding human rights and labour rights.
- A search function allowing users to check specific funds for controversial holdings and “greenwashing” indicators.
Target audience
The primary audience includes retail investors and consumers looking for sustainable investment options. It also serves researchers, civil society organisations, and financial advisers seeking to perform deeper due diligence on fund compositions.
Relevance to finance professionals
- Risk assessment – Identifying reputational and compliance risks associated with funds that hold shares in companies violating international norms or environmental standards.
- ESG analysis – Providing granular data on fund holdings to substantiate or challenge sustainability claims and ESG labels.
- Investment context – Tracking the prevalence of controversial industries within European fund portfolios to inform long-term ethical investment strategies.
