The investigations by US and German financial watchdogs into $1trn asset manager DWS reflect a general tightening of regulatory criteria for funds labelled as ESG or sustainable.
The year to date has seen record-breaking support for shareholder resolutions, with asset managers such as BlackRock and Vanguard stepping up their stewardship. However, a lack of data on the real-world impact means the jury is still out on their efficacy.
The debate over how the fiduciary duty to seek the best returns affects ESG investing – and whether it should do – has intensified lately, with prices of both sustainable assets and many 'dirty' investments soaring.
As demand for sustainable investing continues its global rise, the corresponding jump in regulation has meant Australia and Europe – among the leaders in this area – have witnessed eligible ESG assets drop dramatically as a proportion of overall assets. Will Canada be next?
Asset managers are labelling more funds as ‘sustainable’ amid accusations of regulator-mandated greenwashing, even as the European Commission’s SFDR update last week did little to clear up confusion over product classification.
The fast-growing sustainability-linked leveraged loan market is ripe for abuse. Just-released issuance guidelines aim to crack down on weak key performance indicators, but sanctions lack teeth.
The spotlight is on publishers of ESG ratings with a recent damning critique coming from a prominent academic claiming their model should be ripped up. But laying the blame solely on rating agencies gives asset owners a free pass they don’t deserve.
Companies across the globe, from banks to beauty product purveyors, risk losing the best staff if they fail to take account of a new generation of executives' greater ethical awareness and willingness to act on it.
To ensure a safe exit, influential private equity houses are showing signs of embracing ESG within their investment practices. There is a stronger conviction that sustainability will create greater value over time. Entrepreneurs need to take note.
Retirement funds are not typical issuers of debt, yet several of Canada's big players have not only sold plenty of conventional bonds, but are increasingly moving to obtain green funding. Capital Monitor looks at the financial realities of why.