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For more than a decade, responsible investing in Canada experienced steady upward growth. A new report says that trend has reversed itself in the last two years, as the industry struggles to respond to allegations of greenwashing and a tougher regulatory environment. . More to be done on responsible investing.
Investment management firm Fidelity International announced today plans to adopt the “Sustainability Focus” label introduced by the Financial Conduct Authority (FCA)’s Sustainability Disclosure Requirements (SDR) for three funds within its UK domiciled equity fund range.
By: Lyons O’Keeffe, ESG Director at IQ-EQ Environmental, social and governance (ESG) considerations and other social responsibility concerns will continue their growing influence in 2023. This year, we can expect regulations and enforcement to make greenwashing more ‘obvious’ and accordingly harder to get away with.
The FCAs SDR requirements were introduced by the regulator in November 2023 , aimed at helping investors assess the sustainability attributes of investment products, and to avoid greenwashing risk, to portfolio managers. We are appreciative of the FCAs ongoing collaboration.
The new fund builds on a similar strategy to BlackRocks BGF Brown to Green Materials Fund launched for European investors in 2023. The FCAs SDR requirements were introduced by the regulator to help investors assess the sustainability attributes of investment products, and to avoid greenwashing risk, to portfolio managers.
The report also found that greenwashing had overtaken performance concerns as the pre-eminent barrier to responsible investing. Regulators’ focus on greenwashing has also contributed to heightened transparency, as investors seek to back up their sustainability claims.”
The new rules form part of the FCA’s Sustainability Disclosure Requirements (SDR), introduced by the regulator in November 2023 , aimed at helping investors assess the sustainability attributes of investment products, and to avoid greenwashing risk, to portfolio managers.
The European supervisory authorities (ESAs) and EU national competent authorities (NCAs) will need to build out their in-house resources and skill sets to effectively identify and handle instances of greenwashing by financial institutions, but greater guidance is recommended by observers rather than new waves of regulation.
In this article, I’ll summarise key events defining 2022 and present four sustainability trends that will prepare you to create an impact in 2023. In 2022, the voice against “greenwashing” practices was clear and loud. Sustainability trends 2023: Mandatory reporting. 2022 Sustainability Summary.
A ton of climate tech companies are working on solutions that leverage AI,” says Ariel Sharir, an impactinvesting analyst at The Atmospheric Fund. “It Ariel Sharir, impactinvesting analyst, The Atmospheric Fund In architecture, some firms are incorporating analytics and AI into their computer-aided design platforms.
Investors are increasingly considering sustainability beyond the risk management lens, with the global impactinvesting market reaching an estimated US$1.64 Under Japan’s Presidency of the G7, the ITF will be continuing its work throughout 2023, advocating for the implementation of its impact recommendations across jurisdictions.
“The frequency and intensity of these events push me to work harder to get solutions and best practices to as many communities as possible so they are prepared and the impact is minimized.” It’s fascinating to see the mining industry trying to capitalize on these disasters to justify even more greenwashed destructive projects,” he says.
CEO Sam Duncan said new tech capabilities, such as artificial intelligence (AI), are needed to address the proliferation of sustainability data which is creating confusion for users of ESG ratings giving rise to accusations of greenwashing.
Since the IA began tracking these funds in 2000, responsible fund inflows have “tended to be more consistent than non-responsible investment funds” across both retail and institutional markets, she says. ESG integration alone is not sufficient for inclusion.
Visit corporateknights.com in April 2023 to nominate any change agents under 30 that you think should be considered for next year’s list. And he hopes that his impact-investing management firm (which he co-founded and helped launch this summer) will play an important role in closing the US$2.5-trillion Stephanie Willsey.
The European Markets and Securities Authority (ESMA) released an analysis that noted the “absence of harmonised and standardised reporting requirements” for private sector actors against SDG targets, and concluded that most funds claiming to contribute to SDGs neither explained clearly how they aligned, nor invested any differently to non-SDG funds.
Nascent movement Speaking at the biodiversity summit, Leo Niesel, Senior Investment Research Specialist at Mercer, affirmed that the UK’s biodiversity credit scheme would come into force next week. There’s so much debate about it, but I think there’s a high-quality carbon credit space,” he responded.
This good intention has translated into purchases as well, with electric vehicles (fully electric or hybrid) accounting for 48% of new passenger car sales in Europe as of November 2023. The Impact of Climate Entrepreneurship in LMICs In another reason for optimism, this momentum isn’t limited to the developed world.
This follows the European Commission’s three-month 2023 consultation, which collated feedback on the effectiveness of SFDR over the past three years. The transition category could also be extended to include a sub-category for impactinvestments targeting assets offering solutions to sustainability-related problems.
German asset manager DWS has restated its commitment to ESG, in the aftermath of greenwashing claims and investigations. The transaction is expected to close in H1 2023 and is subject to regulatory approval by the Danish Financial Supervisory Authority. IWC – which oversees €5.5
Kieron Boyle, CEO at the UK’s ImpactInvesting Institute, explains how its Just Transition Criteria are being embedded in fund design. Rather than simply avoiding financed emissions, investors are growing increasingly interested in allocating capital towards a just transition to a net zero economy.
EU Bank Regulator Outlines Plans to Address ESG Risks, Disclosure, Greenwashing. Guest Post – The Bottom Line: Why CFOs Need to Lead ESG Reporting in 2023. ESG Investing. M&G Backs Launch of Sustainable Food-Focused ImpactInvestment Funds with £200 Million Commitment. Biden Administration Allocates $3.7
Despite record oil-company profits and a surge in military share prices stemming from instability in the Middle East, most sustainable investments have quietly outperformed in 2023. We saw the benefits in 2023 with huge growth in green jobs in the U.S. Divestment is different from ESG, which is different from impactinvesting.
A design for life – The unquantifiable and unpredictable impact of artificial intelligence (AI) has propelled governance and regulation of the sector to the top of the agenda for investors and policymakers.
It is going to establish an office in Beijing in mid 2023,” says Peiyuan. ChinaSIF estimates that the size of China’s ESG market in 2022 was RMB 24.6 trillion (US$3.57 trillion) growing from RMB 18.4 trillion in 2021. The post China’s ESG Policy Dash appeared first on ESG Investor.
The FCA’s SDR requirements were introduced by the regulator in November 2023 , aimed at helping investors assess the sustainability attributes of investment products, and to avoid greenwashing risk, to portfolio managers.
The FCAs SDR requirements were introduced by the regulator in November 2023 , aimed at helping investors assess the sustainability attributes of investment products, and to avoid greenwashing risk, to portfolio managers.
International investment manager M&G Investments announced that it will adopt the new Sustainability Improvers label introduced by the UK Financial Conduct Authority (FCA)s Sustainability Disclosure Requirements (SDR)for its Sustain Paris Aligned range of climate mitigation-focused investment funds.
New Zealand’s Minister for Climate Change James Shaw tells ESG Investor that Australia and New Zealand have a uniquely close relationship. “2023 is the 40 th anniversary of Closer Economic Relations,” Shaw says. “By Last month, the two countries signed an agreement to tackle climate change collaboratively alongside other Pacific countries.
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