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Make sustainability a priority in the boardroom With the term ‘sustainability’ now mainstream in the corporate world, going green shouldn’t be an afterthought in any company. It should be a key item of discussion in the boardroom agenda to help inform the business’ corporate strategy.
Investor demand for green, social, sustainability, sustainability-linked and transition bonds (GSS+) has surged in H1 2023, with regulatory developments bringing greater transparency and confidence to the market. Linklaters forecasts record year for green bonds, while SLB issuance suffers Q2 slowdown.
Europes Regulations Will Redefine Expectations Globally The European Unions Deforestation Regulation and the European Commissions Corporate Sustainability Due Diligence Directive have set higher bars for environmental, economic and socialsustainability that food companies will need to reach to sell into Europe.
However, companies are often lost in a series of topical buzzwords such as ‘Sustainability’ and ‘Corporate Social Responsibility’. ESG and sustainability teams need to be protected in the face of adversity, such as the COVID-19 pandemic. We call out greenwash. This is where ESG stands out.
Protected status for ESG investment products could mark the beginning of the end for greenwashing for UK investors. Before long, any asset manager thinking of slapping a ‘sustainable’ or ‘ESG’ label on its investment products for UK clients should think twice – at least. It thinks there is a problem about greenwashing.”.
The tenth anniversary of Nordic asset manager Storebrands Green Bond Fund offers a yardstick for the significant growth of and interest in green, social, sustainability, sustainability-linked and transition (GSS+) bonds during the last decade. Launched in 2015, the fund has hit almost SEK 11 billion (US$1.1
In some cases, this is because managers know their Article 9 strategies won’t meet the 100% sustainable investment criteria, Bioy noted, “regardless of how a sustainable investment ends up being defined”. .
It is also important for the government to clearly set out what it means by terms such as ‘net zero’ to ensure that DNSH reporting is consistent and to reduce the risk of greenwashing, the paper said. However, any projects that are unable to meet the DNSH criteria should not be technically classified as taxonomy-aligned, GTAG added.
Combined, the regulation is designed to help European asset owners understand, compare and measure the sustainability characteristics of investment funds, limiting their exposure to greenwashing. . “We In turn, this will help to inform the data needed for asset managers complying with SFDR. .
Concerns over greenwashing have accelerated efforts by regulators and standard setters to develop and introduce more robust forms of disclosure and measurement to the burgeoning ESG investing market, he suggests.
Global sustainable bond issuance surged in 2021, with data providers estimating total volumes just above or below US$1 trillion; green bonds accounted for roughly half. Moody’s ESG Solutions expects overall GSSS-labelled (green, social, sustainability and sustainability-linked) issuance to rise from US$992 billion last year to US$1.4
The market has been using estimates from third parties, when we would much rather obtain that information from companies directly,” said Caitlyn McSherry, Director of Investment Stewardship at Neuberger Berman. Curbing greenwashing. There will always be companies that exceed expectations, but it will at least give it a floor.
While progress was uneven, it was achieved against a radically changing geopolitical backdrop, and reinforced by moves in the US to mandate climate risk disclosures by corporates and discourage greenwashing by fund providers. It might not be perfect, but perhaps we should not expect it to be. Beyond disclosure.
In recent weeks, Bloomberg has announced the launch of the Bloomberg Global Aggregate Green, Social, Sustainability Bond Indices , while MSCI unveiled a suite of indices under the Climate Action banner. Concerns have been raised that sustainability-branded passive investment vehicles can be too broad-based to eliminate ESG risks.
Green light for greenwashing – The US Inflation Reduction Act is widely seen as giving the green light to green investments, due to the incentives it provides for allocating capital to renewable energy projects and technologies, but will it also fuel greenwashing? Not if the SEC has its way.
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