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Growth in ethical funds is accelerating, but our ability to assess them isn t

Growth in ethical funds is accelerating, but our ability to assess them isn’t We’re sorry, this service is currently unavailable. Please try again later. Dismiss June 30, 2021 12.42pm Normal text size Advertisement The rising tide and power of “socially responsible” funds is reshaping the investment and corporate landscape. Problem is there isn’t a consensus or agreed framework to determine what constitutes a sustainable investment, and the “chicken and egg” debate continues about whether “responsible” investing drives or follows superior returns. UBS released a report this week commissioned from The Economist‘s intelligence unit. The result of a survey of 450 institutional investors in North America, Europe and the Asia Pacific region underscore how embedded environmental, social and governance (ESG) factors are becoming in fund managers’ investment decisions.

From green to gold: 5 ways CFOs can gain from climate risk disclosure

CFOs face rising heat to combat climate change from a range of stakeholders. Activists demand commitments to shrink carbon footprints. Investors want both green operations and robust profits. Regulators including the Securities and Exchange Commission (SEC) are gearing up to require detailed disclosures on climate risks. When handling such pressure, financial executives draw from an ill-fitting set of tools. They lack a single, detailed framework for measuring climate risk that is recognized across industries, markets and jurisdictions worldwide. Instead, CFOs must choose from among several systems that use different calculation methods and data definitions. The result they often get just a loose grip on climate risk, according to accountants and experts in sustainability measurement.

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