According to PhD researchers at two leading Belgian universities there is currently too much ambiguity and a lack of a universal approach in calculating the ESG.
There has been a significant increase in sustainable investing over the last few years as more and more ESG funds come onto the market. As a result, the EU launched the SFDR (Sustainable Finance Disclosure Regulation) in March 2021 to ensure fund houses, banks and insurance companies communicate in a clearer manner to what extent their investments are sustainable. The idea is simple, the EU wants to help the smaller investors better understand to what degree their pension plan or investment fund is sustainable/ ethical. While short term challenges remain around how organisations collect ESG Data; how different agencies report this data and how ESG are scored, progress is being made on bringing more transparency to the grading of ESG.
Monnet Capital is committed to discussing Ethical investing with our clients. We are happy to discuss the benefits of ESG, sustainable & impact investing.