CFA Societies Australia says regulators and asset managers need to adopt uniform disclosure standards governing environmental, social, and governance (ESG) investment products. Citing concerns over ‘greenwashing’ — misrepresenting the extent to which a financial product is environmentally friendly, sustainable or ethical — CFA Societies Australia said uniform standards are vital. Lisa Carroll, chief executive of CFA Societies Australia, said: “We believe the CFA Institute Global ESG Disclosure Standards for Investment Products can help asset managers avoid greenwashing outcomes and the need for global uniform standards has never been greater with so much money pouring into the sector.
“Against that, labels such as ESG and socially responsible investing are still largely unregulated within Australia and across the globe. This highlights the need for uniform standards worldwide. “The Global ESG Disclosure Standards for Investment Products help to meet this need. The Standards provide asset managers with a model set of disclosure requirements which identify key information that should be disclosed to investors, helping to avoid greenwashing.”
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