“Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions about how to invest their money.”
Search Query: #greenwashing
Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.
“Vanguard promised its investors and potential investors that the product would be screened to exclude bond issuers with significant business activities in certain industries, including fossil fuels.”
“Our interventions ranged from securing timely corrections and issuing public infringement notices through to commencing civil penalty proceedings.”
Regulators noted that the sustainable finance regulatory framework is not yet fully developed or is still at an early stage of implementation, which suggests that benefits of some rules are not fully visible yet.
“Regulators need effective resources, practices, tools, and techniques to promote consumer protection and market integrity, which is supported through participation in critical multilateral forums such as IOSCO.”
“There is increased demand for sustainability-related financial products, and with that comes the growing risk of misleading marketing and greenwashing. If financial products make sustainable investment claims to investors and potential investors, they need to reflect the true position.”
“In the final three months of last year we commenced a number of significant enforcement and regulatory actions to address misconduct, market integrity threats and consumer harms in sectors including financial services, retail and crypto-assets.”
While some investment screens were applied by CFS, they were more specific and implemented on a more limited basis than CFS’ website had suggested.
“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.”
“As more and more investors consider using AI tools in making their investment decisions or deciding to invest in companies claiming to harness its transformational power, we are committed to protecting them against those engaged in ‘AI washing’.”
“Looking ahead, markets are set to remain very sensitive and risks of market corrections continue to be high, given geopolitical and macro-financial uncertainty.”
“This is an important milestone in our ESG journey as a Group, and through bringing together the existing Apex ESG offering, and the additional expertise brought in through the MJ Hudson acquisition, under one brand – we can deliver a powerful offering driven by a combination of people and platform.”
ASIC has strategically focused its enforcement actions on areas causing the most significant harm to consumers and small businesses. These priorities include sustainable finance, risks related to Australia’s ageing population, and disruptive digital technologies. “We have made considerable progress against these priorities throughout the year, and this work continues.”
“ZERO13 provides a desperately needed, interconnected global carbon ecosystem for all types of participants, in a regulatory compliant manner, to more efficiently match supply with demand.”
