Regulatory steps, such as improved disclosure, are essential tools against greenwashing. But the real difference comes when people care about and engage with the disclosures. Caring makes greenwashing both more difficult and less worthwhile.
This post links to comments submitted to the US Department of Labor regarding their proposed rule on prudence and loyalty in selecting plan investments and exercising shareholder rights
A belief in markets should not be dogmatic like a belief in Santa Claus; it should be based on a clear understanding of the necessary conditions for markets to serve the overall good, and a clear understanding of what can cause them to fail.
Scenario analysis is a valuable risk tool, but unfamiliar to many investors. It’s about the particular, not the general; qualitative as well as quantitative; and it’s about the journey not the destination.
It is wrong to attack ESG as a smokescreen, distracting from effective policy action. Public policy is the highest priority, but it alone will not be enough. We need investor action too. Don’t write off every investment manager as irredeemably part of the problem.
Better measurement of ESG factors is important. But it’s not enough. We can’t afford to wait for perfect measurement before taking other action.
A new EU rule due to come into force later this year will require asset managers to take account of a client’s sustainability preferences. This will affect product strategy, reporting, and more.
With SFDR starting to take effect from March 2021, ESG policy is top of mind for many investment firms. Collie ESG provides review and development services to help firms get ready.
This post links to comments submitted to the US Department of Labor regarding their proposed update to the treatment of ESG considerations in selecting plan investments
One of the most important things that good regulators do is to minimize any misalignment between individual incentives and the wider good. That means encouraging a long-term responsible mindset among investors.