Boutiques broadly welcome SFDR (but concerns over costs remain) citywireselector.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from citywireselector.com Daily Mail and Mail on Sunday newspapers.
‘Sustainable investing’ continues to gather momentum as a fundamental change to the investment industry.
It has gone from one frequently disregarded a few years ago, to one arguably at the start of an environmental, social and corporate governance (ESG) “bubble”, given the rapidly growing capital flows and valuations.
As investor demand has increased, marketing of green or sustainable investment credentials has ballooned as well. So, how can investors understand and avoid the risks of so-called greenwashing?
The Oxford Dictionary refers to greenwashing as the “practice of over-emphasising a company’s environmental credentials, often by misinforming the public or understating potentially harmful activities”. Historically, greenwashing charges have been levelled at companies who have attempted to position or promote their brand as more environmentally-friendly than the reality of their businesses.
ESG: Is the G silent for ECAs? - TXF News txfnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from txfnews.com Daily Mail and Mail on Sunday newspapers.
By Reynir Indahl 2021-02-24T15:07:00+00:00
While EU regulation is a positive development, which will bring greater standardisation to ESG reporting, investors, organisations and regulators must aim to go further
Larry Fink’s annual letter once again outlines the role of asset managers in combatting climate change and working towards net zero targets. His statements come off the back of a year when environmental, social, governance (ESG) investments grew fourfold, outperforming traditional funds, as investors became hyper aware of the role externalities and business resilience on future growth prospects.
In particular, Fink highlighted the importance of public disclosure on carbon emissions, enabling investors to differentiate between companies’ eco-credentials, identify greenwashing and ultimately achieve “true societal change”.