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The answers to these questions will be shaped by the regulatory requirements faced by investors, including their fiduciary duties, their disclosure requirements, and the need to avoid greenwashing.
Issuance volumes for SLBs were particularly weak in the second half of the year, as issuers faced scrutiny of the credibility and robustness of their linked sustainability targets, as well as the sector’s exposure to high-yield issuance. A more supportive policy environment, such as the recently passed Inflation Reduction Act in the U.S.
Issuance volumes of green, social, sustainability and sustainability-linked (GSSS) bonds rebounded strongly in Q1 2023, resuming double-digit growth trends after falling 18% in 2022, according to a new report from Moody’s Investors Service. trillion in 2021.
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.”.
Before the end of the year, it will publish a price for carbon emissions, which Cohen hopes will put an end to one of the many hot and increasingly political debates surrounding the netzero transition. There are lots of prices for the cost of polluting the atmosphere by emitting more CO2.
Responsible investment opportunities received a further boost earlier this year with the election of a new government committed to transitioning Australia toward a low-carbon economy in line with an accelerated netzero pathway. which has now been approved by federal parliament. Thematic variations.
Further, the shortcomings of Europe’s renewable energy directive will be debated more urgently, as energy security concerns combine with netzero targets. As some noted , legislative momentum on sustainability and climate was already slowing, just 100 days after COP26.
Since then, heatwaves across the northern hemisphere, gathering energy and food security crises, and climate policy actions across the globe, notably in the US , have raised new questions about the path to a netzero economy – alongside concerns about the impact of inflation, disruption and transition on existing economic and social inequities.
Much of the required fund-raising will be realised through sustainable bonds, said Moody’s, due to a post-pandemic focus on investment to achieve UN Sustainable Development Goals (SDGs) and major governments’ pursuit of netzero CO2 emissions targets. Developing economies globally need to invest as much as US$4.5
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. Elsewhere, it added, index providers should supply net-zero aligned benchmarks and asset owners should use them.
It is also important for the government to clearly set out what it means by terms such as ‘netzero’ to ensure that DNSH reporting is consistent and to reduce the risk of greenwashing, the paper said.
Same direction, different pace – This week saw several steps toward a world in which sustainability is fully integrated into business and investment decisions, but perhaps none more significant than updated evidence and guidance on jurisdictions adopting common disclosure standards. In that respect, the picture is still somewhat mixed.
Richard Hardyment, Head of Engagement at the Institute of Business Ethics, calls for a revolution in the mechanics of measurement to realise sustainable finance’s potential. There are accusations of greenwashing from one side, ‘wokeism’ from another, and a lingering question on everyone’s lips: is it making a difference?
The likely challenges to SEC’s climate risk disclosure rule reflects a wider anti-ESG backlash, partly fuelled by the scepticism that accompanies greenwashing scandals, but also driven by the culture wars between conservatives and liberals that have characterised US politics in recent years. Curbing greenwashing. Anti-ESG backlash.
International investment manager M&G Investments announced that it will adopt the new Sustainability Improvers label introduced by the UK Financial Conduct Authority (FCA)s Sustainability Disclosure Requirements (SDR)for its Sustain Paris Aligned range of climate mitigation-focused investment funds.
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