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Don’t Throw out ESG with the Greenwashing Bath Water

Chris Hall

ESG has gone mainstream and generated a backlash because our collective definition of value creation is evolving. The recent tide of stories about greenwashing and divergent ESG ratings by financial actors have called into question the whole enterprise. ESG sceptics, it’s time to trust the process! A tale of two paradigms.

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SEC Charges Goldman Sachs for Not Following ESG Investment Policies

ESG Today

The charges come as regulators around the world, are ramping efforts to fight greenwashing, in which the claims made by asset mangers regarding the ESG or sustainability criteria used in a fund or firm’s investment process is overstated or misleading.

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Guest Post – The Rise of the ESG Controller: Shaping Sustainable Business Practices

ESG Today

These risks may include supporting ESG claims (avoiding greenwashing), supply chain disruptions, regulatory changes, and human rights violations. The ESG Controller can serve as a catalyst for innovation and value creation.

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More than 75% of Private Markets Investors Plan to Stop Investing in Non-ESG Products: PwC

ESG Today

LPs, for example, were most positive on the impact of regulatory developments on addressing greenwashing concerns, with 64% satisfied in this area, while this was the lowest-performing area in terms of satisfaction for GPs, at less than 50%. LPs and GPs diverged, however, on some aspects of their views of regulations. Investors in the U.S.

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How Tracking GHG Emissions Accelerates Value and Strengthens Companies

3BL Media

SUMMARY: James Mandel, Blackstone’s Chief Sustainability Officer, and Jake Shirmer, a Principal in Portfolio Operations, explain why tracking greenhouse gas emissions is neither greenwashing nor a compliance checkbox. Rightly understood, then, tracking GHG emissions is neither greenwashing nor a compliance checkbox. link] $BX #GHG.

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Global Sustainable Finance Insights Series | Sustainability Reporting in Financial Services

3BL Media

For example, in smaller private markets funds, the requirement may be for a broader role combining senior ESG reporting expertise with commercial acumen/value creation. For many smaller firms there may still be insufficient demand for a full-time senior reporting lead.

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EY Survey: Investors say Companies are Cherry-Picking Reported ESG Data

ESG Today

According to the EY report, the survey’s findings of a perceived shortfall of effective corporate reporting on ESG, and the misalignments between investor and company expectations on long-term value creation and sustainable growth could impeded the ability of organizations to access capital and progress on meeting sustainability goals.