Demand for green investments has led to a rush by investment managers to label products as sustainable, when portfolios are not.Despite new rules in Europe to crack down on greenwashing, it is still not easy to spot genuine environmentally-friendly funds.But the new regime has not resolved the inconsistencies in the portfolios claiming green credentials.
Last year, the Commission clarified the rules to require fund managers dedicated to pursuing sustainable investments - known as Article 9 funds under the SFDR - to have 100% of their portfolio in environmentally-friendly companies.The SFDR defines sustainable investment as contributing to"an environmental or social objective", assessed by indicators such as use of raw materials or production of waste.
The Commission's changes aim to plug gaps that allowed funds branding themselves as sustainable to invest in everything from oil to tobacco. For example, data provided to Reuters by Morningstar shows that as of mid-January more than 100 out of 891 Article 9 funds in Europe were invested in some aspect of thermal coal, a big climate change contributor.
Eric Pedersen, head of responsible investments at Nordea Asset Management, also said the investments were in line with its energy transition planning.A Macquarie spokesperson said its fund's coal exposure was linked to power generation investments where the companies had agreed to phase out its use. This is used by the funds industry, while some fund managers also have their own versions to keep track at the portfolio level.
Pictet Asset Management's head of ESG Eric Borremans and Nordea's Pedersen said implied temperature rise estimates in general are methodologies in their infancy and should not be used on their own to assess the sustainability of a fund's portfolio.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Talk – South Africa’s leading online business talk showBusiness Talk is the best place for your executives to share their insights and experience with a wide South African business audience.
Source: BusinessTechSA - 🏆 24. / 61 Read more »
Business Talk – Guardrisk’s Xolani Nxanga unpacks new LaunchPad initiative for scale-upsBusiness Talk – Guardrisk’s Xolani Nxanga unpacks new LaunchPad initiative for scale-ups.
Source: BusinessTechSA - 🏆 24. / 61 Read more »
amaBhungane | Why emergency procurement under state of disaster could be a new licence to loot | BusinessThe state of disaster regulations confer wide discretion on state institutions to pursue emergency procurement to address the energy crisis. But there is no detail about how these processes will be effective or be subject to sufficient oversight. State of disaster is just another means for MYANC to steal and loot more from us! VoetsekANC AncIsCorrupt But we always said/knew it would be that so why the surprise? Time for WC to take advantage.
Source: News24 - 🏆 4. / 80 Read more »
Fate of Karpowership in limbo following new blows | BusinessThe Department of Forestry, Fisheries and Environment has refused environmental authorisation for a Karpowership project at the Port of Ngqura. | News24_Business _Business ✊🇿🇦 _Business So much for our PresidencyZA getting our government’s departments working together to sort out our electricity crisis. Right now we need power quickly and this refusal will just set us back at least another year with load shedding _Business Finally the DFFE got something right. So now do the right thing regarding fishing licences allocation and aquaculture permit in KZN MPUMALANGA AND LIMPOPO please Hon Minister the sectors need support. Food security employment and investment are critical to drive our Nation 🇿🇦
Source: News24 - 🏆 4. / 80 Read more »
SA solar boom: In Feb, 700% more private power registered than in whole of 2021 | BusinessIn February over 1 000MW of renewable energy projects were registered with Nersa, this is about two-thirds of the amount registered in the whole of 2022. | LameezOmarjee LameezOmarjee Demandelanization means getting off the government LameezOmarjee Registered doesn't mean available on the grid immediately 🙄🙄🙄 LameezOmarjee Watch the space 😬
Source: News24 - 🏆 4. / 80 Read more »