ESG in Conversation: Combatting Greenwashing in Financial Markets

ESG in Conversation

Episode Summary Host:

Melissa Chase, Senior Content Marketing Manager, Sustainalytics

Guest:

Ruthann Bartello, Commercialization Director, Stewardship Services

Investors’ Greenwashing Concerns and How to Address Them

Greenwashing is a growing concern among financial market participants. Whether it’s measuring the sustainability performance of companies in a portfolio or ensuring that their own firms and offerings are not making exaggerated claims about their sustainability impacts, asset managers are on the lookout for potential greenwashing risks. Adding to the confusion is a lack of clarity around what defines a sustainable investment, as well as the growing list of regulations and reporting frameworks asset managers need to comply with.

In this episode, we discuss the European Sustainability Reporting Standards, the cornerstone of the Corporate Sustainability Reporting Directive, which should pave the way for more accessible and standardized corporate sustainability information. You also hear from Morningstar Sustainalytics’ Ruthann Bartello about the key strategies investors can use to mitigate greenwashing risks in their investment products and across their portfolios.

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Key Moments

00:00:00

Introduction

00:01:50

Morningstar Sustainalytics new ebook “Seeing Through the Green: As Guide to Greenwashing Risks for Asset Managers”

00:03:00

The final Corporate Sustainability Reporting Directive and its standards are published

00:4:09

Investor stewardship as a tool to combat greenwashing.

00:5:30

Interview with Ruthann Bartello on key strategies institutional investors can use to address greenwashing

00:06:07

Greenwashing explained

00:08:15

Investor concerns around greenwashing

00:09:58

What’s behind investors’ concerns

00:11:35

Consequences of greenwashing for investors

00:15:05

Key regulations related to greenwashing

00:19:31

Strategies for asset managers to mitigate against greenwashing risks

00:20:23

Tips for asset managers to build a robust investment strategy

00:24:49

Final thoughts

Links to Select Resources

• Seeing Through the Green: As Guide to Greenwashing Risks for Asset Managers
• Implications of CSRD: What the Final Standards Mean for Investors and Issuers
• ESG Stewardship: A Powerful Tool to Mitigate Greenwashing Risks

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