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There is also growing demand for education for stewardship professionals, with asset owners and managers looking to develop their in-house stewardship programmes to actively engage with investee firms to drive sustainable outcomes and long-term returns on investment.
In line with IOSCO’s recommendations, the code is designed to improve the transparency of ratings and data providers’ methodologies, ensure procedures for managing conflicts of interest are appropriate, and improve communication channels between providers and the entities covered without undermining their impartiality. Mandatory disclosure.
These new requirements are part of a bigger push right across the economy for new standards on environmental reporting to weed out greenwashing and support our transition to a net zero financial system – for example, through our new Sustainability Disclosure Requirements ,” she said. Walking the walk”.
This, coupled with a nascent taxonomy process, makes investors even more than usually vulnerable to greenwashing. . Developing taxonomies is challenging enough; feeding reliable, credible information into those systems in a region as diverse as Asia with widely differing levels of regulation and transparency is even more daunting. .
Some of the larger US charitable foundations have already declared deep commitments to targets related to the UN Sustainable Development Goals, such as the eradication of poverty and promotion of equality. It has its origins in 1992’s Cadbury report and code, which covers the financial aspects of corporate governance.
While this tells the story of a dynamic and maturing market, professionals are finding it difficult to stay informed of developments. Shareholder advocacy and engagement has certainly not been spared from the broader debate around widespread greenwashing in responsible investing. No man is an island”.
The incoming CEO of the Global Reporting Initiative which was involved in the development of the supporting European Sustainability Reporting Standards said double materiality was essential for effective sustainability reporting, ensuring companies manage financial risks while also addressing their broader impacts.
There was already a first draft of a sustainable finance taxonomy, explains Reynolds, and now the Australian government is providing funding for the next stage of the taxonomy’s development. She says ASFI will be learning from what other countries have done on “what to do and what not to do”.
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