• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video

Lipper's Glow: Sustainable finance initiative of the ECedit

Lipper's Glow: Sustainable finance initiative of the ECedit
  • Ridhima Sharma
  • Ridhima Sharma
  • 17 September 2018
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

One of the largest hindrances for the distribution of sustainable investments (SRI/ESG) is the fact that fund promoters do not use a common taxonomy to describe their investment approaches. This different wording confuses investors and holds them back from investing, since it isn’t clear to them which approach would best suit their needs.

With its sustainable finance initiative the European Commission (EC) is seeking to build a framework that fosters a more sustainable investment environment. From my point of view such a taxonomy and the resulting unified classification system are needed to accelerate the integration of nonfinancial criteria into the mainstream investment process as well as to drive the future growth of specialized sustainable investment funds. Therefore, I agree with the position paper of the German fund and asset management association BVI on this topic.

Related articles

  • UK's Investment Association launches consultation on ESG fund classification
  • Monday Morning Memo: The EU action plan on financing sustainable growth has been hollowed by the European Parliament
  • Efama welcomes TEG proposals with caveats
  • What actions can investors expect from the new EU Commission?

I also agree with the view that a holistic approach would be key to the success of this initiative. Environmental considerations should only be a starting point for the proposals. In addition I agree with the BVI that the upcoming regulation needs to be holistic, i.e., it needs to cover all asset classes, investment strategies, and vehicles in order to enable investors to make informed investment decisions about ESG risks. This means the disclosures need to be as simple as possible but at the same time detailed enough for investors to determine the ESG risks within a given investment vehicle.

In addition, the EC must avoid double disclosures that may come from the requirements of another regulation, such as the regulation on disclosure relating to sustainable investments and sustainability risks, which may not harmonize with the taxonomy. All in all, it can be concluded that the upcoming regulation by the European Commission can have very positive effects on the investment decisions made by investors about the ESG impacts of their investments.

It also has the potential to foster the integration of nonfinancial (ESG) criteria into investment products, which will be the key driver for sustainable investments to become mainstream, i.e., to reach retail investors. That this assumption is correct can be seen in the activities of large asset management companies such as BlackRock, DWS, and UBS, who have already started to integrate nonfinancial data into their conventional mainstream products.

Detlef Glow is head of EMEA Research at Thomson Reuters Lipper

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
Back to Top

Most read

HSBC appoints CEO for the Middle East region
HSBC appoints CEO for the Middle East region
People moves: Phoenix Group, Franklin Templeton, TMF Group, AJ Bell, Arete, Just Group
People moves: Phoenix Group, Franklin Templeton, TMF Group, AJ Bell, Arete, Just Group
Nordic Fund Selector of the Year 2021 shortlist announced
Nordic Fund Selector of the Year 2021 shortlist announced
UK Budget: Sunak freezes lifetime allowance for pensions contributions
UK Budget: Sunak freezes lifetime allowance for pensions contributions
Europe's wealth mangers increasingly focusing on Bitcoin: survey
Europe's wealth mangers increasingly focusing on Bitcoin: survey
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading