Lipper Inc. is planning to launch a system for grading mutual funds based on environmental, social and governance standards, InvestmentNews reported March 12.
The ESG rating system has been in development for more than two years now. It is not expected to launch until the end of 2019 at the earliest, according to the report.
Robert Jenkins, the company's global head of research, said the rating system will be similar to existing rating systems and will be applicable to a variety of funds, the news source added.
Lipper, a majority-owned company by Thomson Reuters Corp., provides mutual fund information, analytical tools and commentary to investment professionals.