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Challenges for Investment Professionals regarding greenwashing

12/12/2023
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DSI and EY are joining forces in 2023 for roundtable meetings on greenwashing in the financial sector. We aim to facilitate a constructive dialogue among professionals in the investment industry, discussing recent developments and their impact on investment practices.

Previous meetings

In previous sessions, held in June and September, the focus was on legal, compliance, and marketing aspects of greenwashing. Participants extensively discussed the definition of greenwashing and how organizations interpret this concept. They also reflected on the Progress Report of the European Supervisory Authorities dated June 1st. Read more about these meetings here.

Challenges for Investment Professionals

During our third meeting on November 22nd, investment professionals collectively discussed challenges related to ESG investing and greenwashing. The growing demand for transparency regarding companies’ sustainable results (and the regulations surrounding them) poses challenges for investment professionals. One of these challenges is the sometimes limited availability of the right data. On the other hand, it was also noted that more data might not necessarily be the solution to the problem of greenwashing.

Training

During the meeting, investment professionals emphasized the importance of effective communication. It’s crucial to be transparent about the dilemmas surrounding ESG investing. An investment that was previously classified as sustainable may no longer be so later, partly due to regulatory changes. Investment professionals need a basic level of expertise in the ESG field. DSI can play a role in setting standards for competence and integrity.

Awareness and future whitepaper

It’s essential for organizations to create greater awareness of greenwashing across various sectors. The findings from the three sessions will be compiled into an informative whitepaper, to be shared with the industry in the first quarter of 2024.

Contact information

For more information about these meetings, you can contact Floris Mreijen, the director at DSI, and/or Mark van der Lecq, the lead legal at DSI.

Tags

#Ethics
#Financial
#Greenwashing
#Round Table