ESG in Conversation: Combatting Greenwashing in Financial Markets

05/12/2023 27 min Episodio 66
ESG in Conversation: Combatting Greenwashing in Financial Markets

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Episode Synopsis

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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