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Guest Post – Greenwashing, Greenhushing and Greenwishing: Don’t Fall Victim to These ESG Reporting Traps

ESG Today

Through its classification system, a fund can be labeled “standard,” “promoting” or “having the objective of,” enabling investors to better compare funds and analyze the ESG-related impacts of the investment, known as Principal Adverse Impact indicators.

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EU Watchdogs Ask for Input on Greenwashing Risks

Chris Hall

Separately, the ESAs have written to the Commission asking for a six-month extension on a mandate to review the principal adverse impact indicators (PAI) and financial product disclosures outlined under SFDR. . More time needed .

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This Week’s Tech and Tools News: Asset Owner-led Platform Extends Dataset

Chris Hall

The free SFDR data library covers all 18 mandatory and 46 optional SFDR principal adverse impact indicators (PAIs) sourced from a range of company reports reviewed by YourStake’s data team in one centralised location.

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MiFID II to Boost Green Fund Flows Despite Credibility Doubts

Chris Hall

Finally, firms must ask whether the client would opt for products or instruments that take into account the SFDR’s principal adverse impact indicators on sustainability factors.

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This Week’s Tech and Tools News: 2DII’s PACTA to be Stewarded by RMI

Chris Hall

BlackRock will leverage Clarity AI’s data to facilitate reporting on Principal Adverse Impact indicators, a set of specific ESG metrics mandated by the EU as part of the second part of the regulation, which imposes more granular sustainability disclosure obligations for asset managers.

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The Future of ESG Regulation for Private Funds

Chris Hall

We are seeing many firms commit to collect and report at least some so-called ‘principal adverse impact indicators’ – or PAIs – as they are somewhat rigidly defined under the SFDR and we expect that doing so will become the default for many firms. Negative externalities (PAIs) and the Taxonomy.

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Take Five: Think Big

Chris Hall

As well as asking how well SFDR interacts with other elements of Europe’s sustainable finance architecture (such as the Green Taxonomy and the Corporate Sustainability Reporting Directive ), the Commission also asks about whole vistas of potential change: how useful or burdensome are principal adverse impact indicators (among other types of disclosures) (..)