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Key sources of greenwashing risk identified by the regulators included claims about sustainability impact and company engagement made by asset managers, litigation risk related to misleading ESG claims made by banks, and misleading product claims by pension and insurance providers.
EE: There’s a general concern about greenwashing and the dissonance between what many companies say they believe about ESG issues and what they are actually doing. Do you feel corporate greenwashing has increased or decreased from the 1970s and ’80s? And what can investors do about it? It must be addressed by changing the economy.
Solar PV Manufacturing Capacity Green Data Center Solutions Provider Submer Raises $55.5 Operations Rio Tinto Acquires Arcadium Lithium for $6.7 Operations Rio Tinto Acquires Arcadium Lithium for $6.7
The UK government announced plans to invest £960 million (USD$1.2 billion) in green industries aimed at accelerating manufacturing in key net zero sectors, in addition to a new series of significant reforms designed to rapidly boost the capacity of its electricity grid to address energy transition needs over the coming decades.
See below for the highlights of the past week, and get all your ESG news at ESG Today: Sustainability Goals, Initiatives and Achievements American Airlines Signs Carbon Removal Agreement with Cleantech Startup Graphyte Dow to Build $6.5
European efforts to bring transparency to ESG funds haven’t addressed fears of greenwashing. Almost a year since the European Commission introduced the Sustainable Finance Disclosure Regulation (SFDR), the European investment community remains divided over how to classify the ESG risks and impacts of their investments.
Responsible investing has been around in one form or another for quite some time. Pacifists may choose not to invest in companies that manufacture weapons. Environmentalists may choose to invest in companies that produce durable products from natural materials. In fact, ESG investing grew 143% between 2016 and 2020.
With regulation increasingly promoting transparency and ambition across sustainableinvestment strategies, Chair outlines plans to update how it measures the market. The rapid evolution of the sustainableinvestment market in Europe is forcing changes to the methods used to capture its size and growth.
Examples include companies that help building infrastructure become more energy efficient, manufacturers of alternative energy equipment and companies that are enabling access to medicine or technology. Article 9 portfolios should have “an objective of sustainableinvestments,” according to SFDR.
Although the EU Taxonomy and SFDR were designed to increase transparency and reduce opportunities for greenwashing, it’s still early days, and there is much work to do. When it comes to sustainableinvestment exposure, asset managers should explain how they calculate it. What matters is transparency,” said Bioy.
The group said progress is particularly visible in terms of circularity, sustainable product design, measurement, and water management. ” Geopolitics and regulations impacting corporate sustainability initiatives Executives pointed to climate-related regulations as a key driver of sustainability projects.
Ninety One has been among the first joiners of the World Benchmarking Alliance’s call on asset managers to review their approach to sustainableinvesting to ensure it does not unintentionally lead to divestment from EMs. He reported that many original equipment manufacturers want to be more vertically integrated.
Similar to agricultural activities, the fashion and textile industry accounts for a large share of the European economy and has a high impact on sustainability objectives, as they are heavy polluters. This is a different approach than in the Climate Delegated Act where a vast majority of the activities are sector specific.
Marco Folino 27, Vancouver manager of sustainableinvesting, BentallGreenOak When Marco Folino started working as a management consultant, he found that there were rarely enough sustainability experts to help companies considering integrating ESG into their strategic goals. “A better world doesn’t just have to be a side hustle.
Freek van Til, Project Manager at the Dutch Association of Investors for SustainableInvestment (VBDO), is leading an engagement programme on plastics targeting 38 companies in the consumer goods and grocery retail sectors. But critics say these fall far short of what’s needed. Many of those are covered by As You Sow’s report.
The verdict is still undecided, after a week which saw the electric vehicle manufacturer post record results , while its CEO gave testimony in a California courthouse. Of Musk and materiality – Investors have often wondered whether to view Tesla as a carmaker or a tech company. Tech or car firm?
Broadly speaking, the term ‘transition finance’ typically refers to an investment strategy that focuses on delivering real-world impact by investing in some of the most challenging industries to decarbonise, like steel manufacturing or aviation, alongside upscaling green technologies and infrastructure. .
Teresa Parejo, Sustainability Director for Iberia who presented Iberia’s plan: “Fleet renovation, digitalization of on-board paper, and a zero cabin waste plan are some of the actions to incorporate the SDGs into the aviation sector.” Anirban Ghosh, CSO of Mahindra discussed the impossible mission: heavy transport.
SustainableInvesting – Greater Scrutiny. The increased scrutiny over greenwashing is necessary, and will provoke the market to favor substance over style. The US is poised for a breakout year due to the combination of new EV manufacturing capacity and a refreshed federal tax credit but will still lag Europe and China.
While it’s hard to measure its impact on investor demand for ESG products, it is equally hard to ignore it.” Republican governors from at least 19 US states have pledged to resist ESG investing over antitrust, consumer protection, and discrimination concerns.
A transparent approach that quantifies the financial value of initiatives that also benefit customers, employees, and the environment can help companies avoid accusations of greenwashing and the financial losses that result from green hushing. With an approach like this, brands can see customer loyalty and profits per customer increase.
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