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Funds data and analytics provider Morningstar Sustainalytics predicts that between 30% and 50% of in-scope funds will change name as a result of ESMAs new guidelines. Jamie Broderick, Deputy Chair of the UKs not-profit ImpactInvesting Institute, says that this should come as no surprise.
“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.
“The ESG fund boom shows that investors want to see ESG factors taken into account, but it’s tricky to provide evidence a fund does that,” said Arleta Majoch, chief operating officer at Impact Cubed. Linking our factual data to tech-enabled tools is a powerful antidote to ESG ratings confusion and concerns about greenwashing.”
Net Purpose, a data analytics platform for impact investors, is expanding its team and capabilities, while looking at new technologies to help align investments to UN Sustainable Development Goals (SDGs). Net Purpose expands capabilities, views AI as essential to handle proliferation of sustainability data.
A report in September by asset manager DWS and independent research boutique CREATE-Research found 22% of pension funds surveyed are implementing, or have already implemented, impactinvesting as part of their passive investment strategies. Kuh said that the issue of greenwashing is being addressed.
This not only creates considerable confusion among investors but exposes them to accusations of greenwashing, as well as the risk of holding investments that are not aligned with their own ESD/SDG requirements.
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