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The European Council today announced today that it has reached an agreement on a series of proposals aimed at protecting consumers from greenwashing, setting requirements for companies to substantiate and verify claims and labels regarding the environmental attributes of products and services.
The European Union, China, the United Kingdom and about 20 other countries are developing such taxonomies as a way of discouraging greenwashing and channelling investment to the climate transition. This might include well-documented plans for mothballing facilities and timelines for staff retirements or reassignments.
As the focus sharpens on how governments and businesses are turning netzero commitments into action, We Mean Business Coalition, CDP, Ceres and Environmental Defense Fund have this week released a new report to help companies accelerate their climate journey – via credible climate transition action plans (CTAPs). of warming.
These claims are a result of the increasing pressure on companies from regulators, customers, investors, employees and trade unions to provide a greater degree of environmental accountability — that’s the reason you see “Made in a NetZero Factory” printed on your cosmetics, for example.
Assurance over corporate climate disclosure is critical to prevent greenwashing and ensure that investors can make decisions promoting long-term shareholder value and economic growth.” “Institutional investors have made it clear that they need consistent, comparable, decision-useful climate data,” said Steven M.
The summit’s delegates and documentation admitted there was little new on the agenda, consensus having been reached on the need to reform the global financial architecture , but were consistent in their calls for “a political push to achieve sufficiently ambitious outcomes”. What’s in a name?
Many people and organisations forging the path to netzero were facing up to the need to manage change this week. In parallel with the release of its plans to decarbonise across asset classes up to 2030, the UN-convened NetZero Asset Owner Alliance (NZAOA) published this week a background document outlining its underlying assumptions.
In this paper, we describe our process for assessing ESG-labeled bonds and show that, by systematically applying this framework, investors can help set a gold standard for the market, avoid surprises from controversy and greenwashing, and potentially generate more alpha over time. Less Greenwashing Can Mean More Alpha.
On the investment side, many managers have signed up to the NetZero Asset Managers (NZAM) initiative, are using the Institutional Investors Group on Climate Change’s NetZero Investment Framework to set and monitor targets, and have joined the investor-led initiative Climate Action 100+. . Phasing down and out .
Regulatory pressure on airlines over greenwashing increases as deadlines for widespread incorporation of sustainable fuel approaches. Any attention in this area is fraught with risk; even where there has been no greenwashing, the reputational damage is done when the accusation is made and it is hard to fix.” billion litres (1.5
The proposed implementation guidance and the disclosure framework both build on the Glasgow Financial Alliance for NetZero (GFANZ) transition plan framework , as well as the Taskforce on Climate-related Financial Disclosure (TCFD) and International Sustainability Standards Board (ISSB) sustainability reporting standards. .
The proposed implementation guidance and the disclosure framework both build on the Glasgow Financial Alliance for NetZero (GFANZ) transition plan framework , as well as the Taskforce on Climate-related Financial Disclosure (TCFD) and International Sustainability Standards Board (ISSB) sustainability reporting standards. .
Businesses in transition to netzero may be able to access cheaper capital as a result of a standardised clause in financing agreements linked to reductions in CO2. Adaptable open-source mechanism creates demonstrable link between emissions reduction and finance costs. Objective measurement.
Protected status for ESG investment products could mark the beginning of the end for greenwashing for UK investors. The Financial Conduct Authority (FCA) is consulting on proposals to clamp down on so-called greenwashing by, in effect, giving protected status to key terms connected with ESG-led investing.
The metrics are there to create a true culture of sustainability within the companies that use them, so if you are trying to determine which companies are ‘true green’ while others may be greenwashing, ask whether the metrics they follow are driven by that culture of sustainability.
COP28 may have not delivered all it promised, but investors now have a clearer idea of how the path to netzero will impact their portfolios. The first-ever mention of “transitioning away from fossil fuels” in COP final text was regarded as a major milestone on the path to netzero, even by those who acknowledged its multiple caveats.
Anti-greenwashing rules and guidance may become “diamond standard”. Anti-greenwashing guidance proposed by the UK Financial Conduct Authority (FCA), as well as the promise of extending the finalised Sustainability Disclosure Requirements (SDRs) to pension products, has been welcomed by the investment industry.
In 2022, the voice against “greenwashing” practices was clear and loud. Figure 2: Word Greenwashing rated 100 in popularity in 2022 – source Google Trends. Sustainability trends 2023: Net-Zero roadmaps. At COP26 last year, we left with the feeling that businesses were committed to netzero.
Netzero investors do not start with a blank piece of paper. A growing number of transition frameworks and guidance are now being published by governments and investment industry groups, but many investors have taken it upon themselves to identify how they can best invest in the world’s transition to netzero. .
Non-profit Planet Tracker identifies widening range of greenwashing practices, which may require greater regulatory involvement as well as investor vigilance. . The report identifies six different types of greenwashing which contribute to making the issue tougher to tackle. Slaying the green hydra .
CCUS and blue hydrogen inclusion seen as slowing Canada’s netzero transition, while finance leaders urge stakeholders to “get on with it”. Produced by Canada’s Sustainable Finance Action Council (SFAC) , the proposed framework outlines two categories for sustainability-focused investments.
Labelling gas and nuclear energy as sustainable muddies the waters for netzero-focused investors. . The EU Parliament’s decision to back a Commission proposal to include gas and nuclear energy in its environmental taxonomy is a “problematic outcome” for investors committed to transitioning to netzero. .
The move is intended to align Canadian companies with international ESG reporting standards and help in the transition to a netzero economy. The CSSB’s public consultation period, set to launch in March 2024, will see key documents issued for public comment , with opportunities to share feedback in various ways.
In what may be a first for a federal budget in Canada, the document includes an RBC Economics chart that shows electricity from solar and wind costing less than natural gas. “As This massive battery manufacturing facility will represent a significant portion of the North American battery manufacturing sector,” the budget document states. “It
The policy won’t affect money that has already gone out the door or commitments that have already been signed, there is no published calculation of the future subsidies that will now be foregone, and the documents provide no cost figures for 129 non-tax measures that could be shifted as a result of this week's announcement.
While most of the funds’ documentation analysed explicitly cite exclusions relating to fossil fuels and controversial weapons, none outright exclude companies linked to deforestation in their screening process.
Mobilising public and private capital to fund the netzero transition efforts of emerging markets and developing economies (EMDEs) has been a central theme of discussions at COP27 in Egypt. . They receive mixed signals from their stakeholders and regulators on the appropriate role carbon credits play in netzero strategies.” .
Regulatory pressure over greenwashing increases as deadlines approach for widespread incorporation of sustainable fuel. Any attention in this area is fraught with risk; even where there has been no greenwashing, the reputational damage is done when the accusation is made and it is hard to fix.” billion litres (1.5
The Bonn Climate Conference got under way this week by unveiling a new phase in accountability and transparency of non-state netzero commitments. Race to Zero , previously responsible for non-state campaigns, will partner with UNFCCC in the endeavour.
Only by moving from averages to actuals audited at reasonable assurance can freeriding and greenwashing be avoided, thereby protecting such valuable investment and our planet. Accenture is helping organizations achieve their net-zero and sustainability targets in a rapidly evolving regulatory landscape.
The year started optimistically, fresh off the bold and ambitious agreement in November 2021 that established the Glasgow Financial Alliance for NetZero (GFANZ). Index fund managers slow-walked on net-zero. North American banks dug in on fossil fuels and pressured GFANZ to capitulate. Canadian and U.S. In the U.S.,
Recent high-profile exits from industry groups like the NetZero Asset Managers and NetZero Banking Alliance illustrate the effects of these growing legal and reputational risks. Looking ahead The backlash against so-called greenwashing is only expected to heighten regulatory scrutiny.
One of the first senior central bankers to flag the financial risks of climate change , he played a leading role in both the Task Force on Climate-related Financial Disclosures and the Glasgow Financial Alliance for NetZero. This at least will have the practical benefit of helping to put the era of greenwashing behind us.
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