Home > To Avoid Greenwashing, Impact Assessment is Key

To Avoid Greenwashing, Impact Assessment is Key

Mar 5, 2022

The recent study performed by Inrate along with INFRAS for Greenpeace showed that the market of financial products described as sustainable is growing rapidly. However, without the use of reliable sustainability impact data, the positive impact on sustainable development remains questionable. Indeed, the examined sustainability investment funds hardly succeeded in steering significantly more capital towards a sustainable economy. Measured by the Inrate ESG impact ratings, the funds only improved the impact of investments on the environment and society to a very limited extent. To ensure that investors may achieve a positive sustainability effect, they need data that reliably assess the impact of a company or an investment on the environment and society. 

The new EU sustainable finance regulations provide standards and guidelines for disclosing sustainability information. The regulations underline the importance of the sustainability impact and will considerably improve sustainability-related transparency. However, EU compliance data – for various reasons – cannot replace consistent impact measurements. Only reliable, scientific-based impact assessments allow effectively improving the sustainability impact of investments. 

Financial market infrastructure provider SIX announced today the launch of a new climate data offering, aimed at supporting investors in reporting and monitoring of climate factors, and in climate-related investment and risk decision making.

The climate data sets, from various data providers in a range of industries, will provide clients with modelled and reported emissions data, covering over 33,000 companies globally, and bringing together multiple data sets on regulatory, historical and forward-looking climate impacts from providers including MSCI and Inrate. SIX also announced that it has recently entered into an agreement with environmental disclosure platform CDP to offer access to its global Greenhouse Gas (GHG) Emissions Dataset across various industries.

According to SIX, the new data sets come as investors increasingly require ESG and climate data to monitor investment decisions and to meet growing regulatory disclosure requirements, including the EU’s SFDR and the U.S.’ upcoming SEC Climate Disclosure Rules.

Martina Macpherson, Head ESG Product Strategy and Management, Financial Information, SIX, said:

“Understanding, measuring and managing climate risk and opportunities, as well as the impact that these can have on investment decisions, is a critical area of focus for market participants and policy makers alike. As more climate risk monitoring and reporting is required globally, the cost of compliance is increasing – both in operations and in terms of specialist ESG resources. SIX works with established providers of basic and specific ESG and climate data in the market.”