ESG Today’s Post

European regulators are calling for increased supervisory actions and improved access to data to tackle growing greenwashing risks in banks, investment firms, and insurance companies, according to final reports by the European Supervisory Authorities (ESAs). Check out ESG Today's take on the matter! 📚 #ESG #Greenwashing

In ESG Today: The Final Reports on Greenwashing issued by the European Securities and Markets Authority (ESMA), European Banking Authority (EBA), and European Insurance and Occupational Pensions Authority (EIOPA) add to calls to address growing greenwashing risks at banks, investment firms and insurance companies. The article includes access to the ESMA, EBA and EIOPA reports. Mark (Moshe) Segal https://lnkd.in/garJqunJ

According to new reports released by Europe’s three primary financial regulatory agencies, the European Supervisory Authorities (ESAs), including the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA), increased supervisory actions and better access to data and other resources will be required to address growing greenwashing risks at banks, investment firms and insurance companies. #greenwashing #risk

Measuring how much climate harm financial institutions enable This is a great read from Josephine Cumbo on how experts eg. at John Greenwood 's Corporate Adviser are scrutinising the actual performance of financial institutions on how much climate harm they finance. As we said in our report 'The Devil is in the policy detail', we need hard foundational data on the carbon footprint in portfolios to allow for truly objective, independent ratings. https://lnkd.in/erxdR6rs That is the only real way to assess financial institutional behaviours including progress against targets. The current approach is dominated by narrative reporting on transition plans and 'stewardship' and subjective assessments. This just allows financial institutions to deflect attention away from their actual performance now. Ratings agencies are unregulated and reference benchmarks use inconsistent which means firms can shop around for 'validation'. Worryingly, the FCA's sustainable investment label regime will not enable objective ratings of investment managers' performance. It is a voluntary regime and for those funds that do use a label it is to all intents and purposes a self-regulatory system. The FCA's regime actually risks providing 'official' validation of greenwashing. See: https://lnkd.in/ectcqVNU #ESG #climatefinance #financialregulation #greenwashing

EU regulators propose new social, climate targets disclosures for financial products European Securities and Markets Authority (ESMA) European Insurance and Occupational Pensions Authority (EIOPA) European Banking Authority (EBA) #ESG #sustainablefinance #sfdr #sustainabilityreporting #sustainableinvesting

L'inclusion de plus de cibles sociales était depuis longtemps attendue et contribuera à atténuer une partie de l'ambiguïté qui existe dans ce domaine. Ces nouvelles cibles climatiques resteront des aspects importants des réglementations de l'Union européenne. Il est crucial qu'elles demeurent dynamiques et adaptables au marché ainsi qu'aux exigences réglementaires sans sacrifier leur impact. The inclusion of more social targets has been long expected and will help alleviate some of the ambiguity that exists in this area. That will new climate targets remain important aspects of the EU regulations. It is critical that they remain dynamic and adaptable to the market and regulatory requirements without sacrificing impact.

European investor demand for ESG investments remains steady, resisting the anti-ESG pushback seen in the United States. Fund flow in Europe remains strong with European investors having seven times more capital in sustainable fund assets than US investors. Such investment strength can be attributed to the stronger regulatory framework in Europe -- including 20 rules and 25 voluntary ESG guidelines in the EU versus the two rules and five voluntary guidelines in the U.S. (according to an analysis by ESG Book). Additionally, EU public pension funds continue to drive investor demand for sustainable investments – with 73% of European pensions saying climate change is an investment priority compared with 53% of US pensions.  https://lnkd.in/eNhzwuf6

As the UK government plans to regulate ESG rating providers, Pensions & Investments heard from Samantha Lamb, Head of Fixed Income at GIB Asset Management, on her views. She explained that ESG ratings have perhaps been misnamed and would be better thought of as ESG quant scores. Therefore, she believes that “bringing regulation in to clarify what ESG ratings are and how they should be used can only be a positive step forward." To read more: https://lnkd.in/eSVqbYGY. #PensionsandInvestments #ESGRating #RatingProviders

The EU’s three primary financial services regulators have called for improved supervision and market practice to enhance the integrity of #sustainability-related claims in the #financialsector. The European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) released their final reports on #greenwashing on June 4 as part of a coordinated campaign to highlight the need for stricter oversight of sustainability claims. #bankingsector #resources #disclosure #compliance #regulation

The European Supervisory Authorities (EBA, EIOPA and ESMA) published their Final Reports on Greenwashing in the financial sector. Complementing the Final report, EIOPA is publishing its Opinion on sustainability claims and greenwashing, which sets out four key principles that national supervisors should consider when probing undertakings’ sustainability claims. #eiopa #insurance #pensions #greenwashing #risks #sustainability #solvencyii https://lnkd.in/ewrZ3cQE