As Active Super gets sued by the Australian Securities and Investments Commission, other super funds will feel pressure to beef up their processes and understanding of ESG to ensure they don't fail under regulatory scrutiny.
Regulators are taking steps to strengthen efforts for trustworthy ESG and sustainability reporting standards, which in turn can help reveal hidden value in investee companies.
Australian super funds overstating the positive environmental impact of their portfolios are coming under fire as the country’s financial watchdog increases focus on greenwashing.
One of the large-scale regulations coming into play in 2023 will be fresh European rules around ESG fund marketing. Asian nations are also planning labelling and disclosure requirements.
Even as regulators crack down on the practice, accurately estimating the environmental and social impact of an investment remains challenging.
Dutch pension provider APG’s Asian ESG head points out conflicts of interest for conglomerates and calls for stricter punishments on greenwashing.
The two major institutional investors also shared their approach to tackling greenwashing, which includes going beyond standard disclosures and using artificial intelligence tools.
ESG investors welcome opportunities in infrastructure developments but face challenges with the lack of sustainability data and greenwashing.
Investors and fund managers must play their part in ensuring that ESG funds deliver on their promise – but only government action will ensure this happens, say conference panellists.
DWS is not the only firm misrepresenting on ESG, Desiree Fixler said; Sunsuper turns opportunist on China high-yield property; Funding gap persists in Asia Pacific even as funds pour in; Barings to open Singapore office in November
Clarity and a better understanding of data can help ESG assessment as fears of greenwashing continue to rise in China and globally.
The run-up to the COP26 meeting in Glasgow provides an opportunity for governments to take stronger leadership on the climate crisis as scepticism over green financing escalates.