While some investment screens were applied by CFS, they were more specific and implemented on a more limited basis than CFS’ website had suggested.
Search Query: #greenwashing
“Investors can feel strongly about not investing in tobacco production, manufacturing and sales, and where tobacco-exclusion investments are promoted, the entity making those claims must be able to substantiate the full exclusion of those investments”.
The Financial Conduct Authority (FCA) has proposed an anti-greenwashing package intended to protect consumers and improve trust in sustainable investment products.
Three simple steps should make a difference in tackling greenwashing: use clear labels; define the sustainability terminology they use; clearly explain how sustainability considerations are factored into their investment strategy.
“It is our responsibility to ensure that [investors] have access to material information when planning for their financial future”.
The software underlying the Refinitiv MarketPsych ESG Analytics is an AI-based engine that locates content pertaining to specific companies as well as cities, regions, and countries while excluding corporate press releases, corporate websites, and regulatory filings. In sum, it minimizes the impact of corporate “greenwashing.”
“Because ESG ratings may be divorced from matters of financial materiality, they can reflect a particular political or social agenda.”
ESMA believes this initiative and the related sharing of practices across NCAs, will help ensure consistent implementation and application of EU rules and enhance the protection of investors in line with ESMA’s objectives.
“Traders will have comprehensive ESG data at their fingertips, at no cost, at the precise moment they need to make an investment decision”.
“Looking ahead, our Corporate Plan flags our near-and-medium-term priorities to focus on areas of increasing risk of consumer harm, including greenwashing claims and crypto investment scams. It also sets out our sharpened focus on the superannuation industry and our international work supporting consistency in standards of climate change and sustainability reporting by corporations.”
EarthFund has announced the launch of a decentralized autonomous organization (DAO) with a focus on fighting climate change.
“This will better enable financial institutions to direct financing towards sustainable projects and companies that meet sustainability performance targets.”
The firm claims its platform already demonstrated that it drives a 15% lift in average order value, an 11% improvement in conversion, and a 30% lift in quarterly order frequency for partner brands.
Most consumers, however, don’t trust ESG investment products. Still, an overwhelming majority of people expect sustainable financial services to become the norm (93%), and almost half expect this to be the case by 2025.
Industry leaders have been increasingly calling for a global framework for ESG investing as the sector faces a massive uptick of inflows and, at the same time, faces accusations of inconsistency in their approach to sustainable impactful investments.
A standardized system is thus seen as the biggest threat for the ESG space, but indifference from business leaders, limited checks on greenwashing, and too much regulation were also pointed out as problematic.
Deutsche Bank has recently co-founded the new Net Zero Banking Alliance to align the operational and attributable emissions from its portfolio with pathways to net-zero carbon by 2050 or sooner.
Sustainable finance has become one of the leading topics in today’s trading industry. Green tech accelerator programs are flourishing as market participants must take action to address social, environmental, and governance issues which have increasingly become deal breakers for investors and targets for regulators.
Fintechs should aim to solve at least one of the three key challenges proposed by MAS: (i) Mobilising Capital; (ii) Monitoring Commitment; and (iii) Measuring Impact.
