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ESG Evolution Calls for Terminology Alignment

Chris Hall

The growing use of ESG-related language in fund names and documentation without transparency and underlying evidence increases greenwashing risk, ESMA warned. The GSIA, PRI and CFA Institute have defined ‘screening’ as a process for determining which investments are or are not permitted in a portfolio.

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Sustainability trends 2023

Carlos Sanchez

Among investors, sustainable investing is evolving from negative screening toward engaging with companies. The limitations of spreadsheets are lack of documentation, missing audit trail, propensity for errors, difficulties reconciling year-to-year data sets, and inability to generate real-time or emission forecasting reports.