Unintentional Greenwashing – Product Classification Challenges for Asset Managers

As mentioned in our previous post on ESG investing, unintentional greenwashing is something that every asset manager needs to avoid. In this post we explore the issues faced when categorising products for which ESG characteristics are claimed. Here we offer some suggestions for the key activities that managers can take to minimise the risk of unintentionally categorising products (e.g., claiming article 8 or 9 status when the product in question does not meet the appropriate criteria under regulatory scrutiny), particularly given the reputational damage that could be suffered having promoted an inappropriately categorised product to the market:-

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Barriers to ESG in the Asset Management industry

While there has been a significant increase in interest in Environmental, Social, and Governance (ESG) considerations in the asset management industry, there are still some barriers to widespread adoption of ESG principles. It must be stressed that a key factor in breaking down the barriers to ESG is the continuous evolution of the regulation globally, in terms of both disclosure and risk management. With this in mind, the main barriers include

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Delivering Change

Delivering Change with reliance on a third party is fraught with risk, both parties speak in different corporate languages, they may talk of partnership

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