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The View in 2022 – Another Pivotal Year in ESG
In many ways 2021 was a watershed year for ESG. The European Union’s implementation of Sustainable Finance Disclosure Regulation (SFDR) began in earnest and other regulators around the world – especially in the UK – indicated they may soon follow suit. The COP26 United Nations climate summit later in the year provided a galvanising impetus…
EY Survey Shows Growing Demand for Consistent ESG Reporting Standards
A survey by professional services giant EY Assurance has found that three quarters of financial leaders want to see more consistent ESG reporting standards and that they must be mandatory. A similar proportion of the 1,000 executives interviewed said that ESG was a “significant part of their role” – up from two-thirds in the poll…
Supply Chain ESG Solution Launched by Sustainalytics
Sustainalytics has created Corporate Supply Chain ESG Solutions, a service that will enable clients to gauge the sustainability of companies in their supply chains. The Morningstar unit said the offering would help many industries assess, report and mitigate their ESG risks. The product is delivered through Sustainlytics’ ESG Assessment Platform and draws on the Amsterdam-based…
APAA ESG Risk Guide Stops Short of Mandatory Disclosures
The Australian Prudential Regulatory Authority has become the latest overseer to issue a guidance on banks’ management of climate risks in their portfolios. While its latest guidance offers advice on how institutions should approach the issue, it does not advocate mandatory ESG disclosures. Instead, the regulator said lenders should consider whether other “voluntary disclosures could…
Banks, Institutions Back ESG Book’s Free Data Project
An alliance of global banks, institutions and investors has launched ESG Book, a free source of information that its creators say will make sustainability data a public good. Companies will be able to freely access the data lake to help them report on their own ESG records and financial institutions will be able to use…
IOSCO Report Shows Data Regulations are Just Around the Corner
Growing calls for ESG data and ratings provisions to be brought under the watch of regulators around the world is likely to result in a swell of legislation in the next year or so, vendors told ESG Insight. After a global grouping of financial watchdogs recommended that ESG data products and services be included in…
Optimising Sustainable Investment Processes – How Asset Managers Can Best Prepare
By Martijn Groot, vice president, Marketing and Strategy, Alveo. Investment strategies are increasingly being driven by environmental social and governance (ESG) criteria and considerations, and ESG investment is growing rapidly. Research from Bloomberg found that assets invested according to ESG criteria are on track to exceed $53 trillion by 2025, representing more than a third…
Germany’s BaFin to Take Aim at Greenwashing
Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), has made fighting greenwashing one its chief aims. The Bonn- and Frankfurt-based body said it would seek to combat “misleading marketing practices” in sustainable finance as one of its 10 medium-term objectives. The overseer launched a consultation in August on drawing up guidelines to establish best…
IOSCO Suggests Regulation of ESG Data and Tech Vendors
A body comprising global securities regulators gas suggested individual national watchdogs keep ESG data and technology providers under their gaze. The Board of the International Organization of Securities Commissions (IOSCO) said in a report that the growing importance of ESG data and tech vendors made it prudent to encompass them within regulatory remits remits. The…
SFDR: Dilemma of Shakespearean Proportions Looms Amid Scope Three Preparations
Financial institutions putting compliance processes in place for the European Union’s Sustainable Finance Disclosure Regulations may be reminded of Claudius’ dilemma in Hamlet. “When sorrows come, they come not single spies, but in battalions,” the usurper king bemoans as he contemplates an avalanche of challenges to his authority. As Shakespeare’s antagonist watched events piling relentlessly…