#SFDR

[esgdata1992]

ESMA Tightens the Reins: What Investors Need to Know About Sustainable Fund Labeling

Sustainable investing has exploded in popularity, but with that comes a risk of “greenwashing” — where funds don’t quite live up to their eco-friendly claims. The European Securities and Markets Authority (ESMA) recently finalized guidelines aimed at cracking down on misleading labels for sustainable investment funds. While these regulations might add a layer of complexity, they ultimately benefit investors seeking transparency and genuine impact.

What does this mean for you?

Stricter Labeling: Forget terms like “sustainable” or “green.” If a fund wants to use those buzzwords in its name, at least 80% of its holdings must demonstrably meet strict ESG (environmental, social, and governance) criteria. This could limit your options in the short term but ensures greater clarity when comparing funds.

Transition Funds Get Scrutinized: Funds that support companies transitioning to a more sustainable future, like those partially reliant on fossil fuels but actively working towards cleaner solutions, can now use terms like “transition” in their name. However, they’ll still need to meet that same 80% ESG alignment threshold.

More Compliance Burden: Existing funds have a limited window (around nine months) to adjust their holdings or names to comply. This may lead to some fund restructuring or even closures.

Navigating the New Landscape

While these regulations aim for a more transparent and trustworthy sustainable investment landscape, navigating the changes can be challenging. Inrate can help you:

Decipher Greenwashing: Our in-depth Impact ratings go beyond the label on the fund. We analyze a fund’s actual holdings and assess their alignment with your sustainability goals.

Compare with Confidence: Our comprehensive data allows you to compare different sustainable investment options side-by-side, ensuring you choose funds that truly reflect your values.

Make Informed Decisions: We believe knowledge is power. With Inrate’s data and insights, you can make informed investment decisions that generate positive financial returns alongside a measurable sustainability impact.

The future of sustainable investing is evolving, and with ESMA’s new guidelines, investors can expect a stricter, but ultimately more reliable, marketplace. Inrate remains your partner in navigating these changes and empowering you to build a sustainable investment portfolio that aligns with your financial goals and values. Contributors

[esgdatainrate]

Can New Regulations Solve Greenwashing Concerns in Sustainable Finance?

Excerpt of insights from our Founder: Christoph Müller

As the sustainable finance sector continues to grow, so do concerns about greenwashing. Recent regulations like the EU Taxonomy and SFDR aim to address these issues, but can they truly solve the problem? Let’s delve into this complex question.

The Challenge of Defining Sustainability

Our founder, Christoph Müller, aptly points out that sustainability is a broad concept lacking a universally accepted definition applicable to financial markets. This ambiguity has led regulators to focus on process-level requirements and controls.

While regulations like the EU Taxonomy and SFDR are steps in the right direction, defining the processes Financial Market Participants (FMPs) must follow to label investments as “sustainable,” it’s debatable whether this approach is sufficient to prevent greenwashing.

The Limitations of Process Compliance

Process compliance alone may not meet customer and general market expectations. As Mueller notes, “The final decision about greenwashing is made by the market and therefore by the customers.” This insight highlights the gap between regulatory compliance and market perception.

The Cost-Benefit Analysis of Process Regulations

Greenwashing has been pervasive in the sustainable finance market; one could argue that this is largely due to a lack of availability of what parameters to look at when labelling something as “green”. New regulations are changing this equation. However, the impact of these regulations is unclear, as they increase the cost of both genuinely sustainable products and greenwashing attempts. This shift could have two potential outcomes:

A reduction in ‘sustainable’ assets under management due to increased costs.

An incentive for FMPs to integrate regulators’ definition of ‘sustainable’ more deeply into their investment selection process.

The Regulatory Impact: A Double-Edged Sword

While regulations aim to improve transparency and reduce greenwashing, their impact is still to be seen in the market. As Mueller points out, “It’s not yet clear whether all the efforts to avoid greenwashing will lead to a fall in sustainable investments or improve the quality of what investments we consider sustainable.”

[educationisimp0]

Understanding the Sustainable Finance Disclosure Regulation (SFDR) of the EU

Globally, businesses are incorporating sustainable financing into their daily operations. The European Commission has put new and revised legislation into place as part of the transition to a low-carbon and resource-efficient economy to enhance its action plan on sustainable financing. The action plan’s foundational element is thought to be the EU Taxonomy. A few additional rules are being introduced for organizations to become familiar with. One of these is the Sustainable Finance Disclosure Regulation (SFDR), which helps financial institutions become more transparent about sustainability and shift resources towards more sustainable firms.

Describe SFDR. 

The Sustainable Finance Disclosure Legislation (SFDR), the first legislation put in place by the EU, attempts to shift capital flow in favor of sustainable finance. To avoid greenwashing, SFDR offers transparency on sustainability in the financial market.

When did SFDR become effective? 

The European Union (EU) joined the net-zero campaign to enact financial disclosure standards through the NFRD and the CSRD because it takes sustainability and climate change seriously. To bring sustainable finance back into the spotlight for the EU, the Sustainable Finance Disclosure Regulation, or SFDR, was introduced. On March 10th, 2021, the SFDR framework went into effect to include crucial activities for organizations to comply with schedule.

SFDR Articles 6, 8, and 9 and their Requirements for Disclosure Asset managers must adhere to the mandatory ESG data disclosure standards set forth under the SFDR framework. The articles’ main goals are to increase organization investment strategy transparency and discourage “greenwashing.” Additionally, it aids in refuting claims made by businesses that say their goods are sustainable.

According to the SFDR categorization, a fund can be categorized as an article 6, 8, or 9 funds depending on its qualities and degree of sustainability:

Funds without a sustainability focus, per Article 6

Article 8: Funds promoting social or environmental traits

Article 9: Funds whose primary goal is sustainable investment

Regardless of whether the fund is marketed as ESG or not, article 6 essentially requires asset managers to present the incorporation of sustainability risks in their funds. Contrarily, investments that are marketed as ESG must be classified as either an article 8 …………

Read more- blog/what-is-sustainable-finance-disclosure-regulation/

[rotary-supercollider]

Tumblr horse race!

Before the race starts, let’s run down the racer’s profiles.

(Note: horses 2, Mamba, and 3, Crap, have been removed from the race, for poor health and DUI charges, respectively.)

Horse 1, Paul Revere, is right here, and if the weather’s clear, sure thing. He’s the ghost of the horse that won last year.

Horse 4, Taboo, [DATA LOST]

Horse 5, Big Louise, is said to be the largest horse ever entered in our competition. Her secret? Instead of never skipping leg day, her routine is exclusively leg day!**

Horse 6, Serious Stanley, shot the previous 2 announcers for trying to make a joke about him, so I’m not going for it.

Horse 7, midnight revolver, smokes an entire pack of cigarettes at once before every race. We don’t know what their eyes look like, since behind their sunglasses is only another pair of sunglasses, stretching into a terrifying infinity.

Horse 8, *, wanted to be a chef growing up, but he couldn’t fit onto the guys head to Ratatouille him. He lives his dreams vicariously by pretending the racetrack is potatoes that need to be mashed.

Horse 9, Princess Peach, wields the Dark Lady’s Unspeakable Greatsword of Killing, retrieved from the Wastes of Dal’iaa. He also enjoys gardening.

Horse 10, Rosencrantz and Gildenstern Go To White Castle, claims to have escaped a secret facility where he was forced to fight an army of mantis-men. We’re not sure if that’s true, but he’s got six good legs, so that’s something.

Horse 11, Declan’s royal Jack of Spades, is former prime minister of England Boris Johnson, who made an ill-advised pact with the fey and will be trapped in this form forever unless he wins this race.

Horse 12, Dr. Capaldi, is hurnnjj glabuuu Alena shave fUsft she’d sfDr fesog dir Signs einriebest signse Sofnsbholdn. Isn’t that neat?

The announcer will chime in with commentary on who’s winning the race every 24 hours. The race’s winner will receive a lifetime supply of salmon and ownership of Dal’iaa’s Maw, an eternal storm and the only place the Dark Lady’s Unspeakable Greatsword of Killing can be unmade.

**(Drawing fanart of any of the participant horses without the express written consent of the THRL is a violation of copyright law. We understand that the community of Tumblr is composed of understanding, law-abiding citizens and that this will not be an issue.)

*Face-off, starring Nicolas Cage and Kevin Bacon

[amazechsolutions]

Top Trends Shaping Environmental, Social & Governance Services in 2024

As the global focus on sustainability, ethical business practices, and corporate responsibility intensifies, Environmental, Social, and Governance (ESG) services have become a central component of corporate strategy. ESG services are not just about meeting regulatory requirements—they are key drivers of long-term growth, innovation, and trust in an increasingly conscientious marketplace.

In 2024, we’re seeing rapid evolution in the ESG landscape, with businesses, investors, and consumers demanding more transparency, accountability, and results. As companies navigate this shift, several key trends are emerging that will shape ESG services and practices. Let’s explore the top ESG trends to watch in 2024 and beyond.

1. Increased Integration of Technology and AI in ESG Reporting

One of the biggest challenges businesses face with ESG is the sheer volume of data involved. With a growing number of regulations and the increasing demand for transparency, companies are expected to track and report ESG metrics more comprehensively. In 2024, we are witnessing the rise of advanced technologies like Artificial Intelligence (AI), machine learning, and blockchain in ESG services, helping organizations track, verify, and report ESG data more efficiently.

AI is particularly valuable in ESG reporting, as it can help automate the collection and analysis of environmental, social, and governance data. For example, AI-powered tools can analyze carbon emissions from various operations or track employee diversity in real time, providing accurate insights faster than traditional methods. Additionally, blockchain technology is being used to improve the transparency and traceability of ESG data, particularly in areas such as sustainable sourcing and supply chain management.

As companies strive to meet higher standards of accountability, adopting these technologies will enable them to streamline ESG reporting processes and ensure the accuracy and integrity of their disclosures.

2. Sustainability at the Core of Corporate Strategy

In 2024, sustainability is no longer an afterthought or an isolated initiative; it is becoming the backbone of corporate strategy. Companies are increasingly integrating ESG into their business models, aligning sustainability goals with long-term growth objectives. This trend reflects a broader shift toward recognizing that a sustainable business is not only good for the planet but also beneficial for business performance.

From reducing carbon footprints to transitioning to circular economies, businesses are embedding sustainable practices into product design, manufacturing processes, and supply chains. This year, ESG services are helping businesses identify opportunities for sustainability in every aspect of their operations—from resource management and energy efficiency to waste reduction and responsible sourcing.

Organizations are also taking a more holistic approach to sustainability, considering social and governance factors alongside environmental impacts. For instance, businesses are focusing on improving labor conditions, increasing diversity and inclusion, and ensuring ethical governance practices, all of which contribute to a sustainable future.

3. Rise of ESG Regulations and Standardization

The regulatory landscape around ESG is evolving rapidly in 2024, as governments and regulatory bodies worldwide are implementing stricter rules for ESG disclosures and compliance. The European Union’s Sustainable Finance Disclosure Regulation (SFDR), the U.S. Securities and Exchange Commission’s (SEC) proposed rules on climate-related disclosures, and other regional frameworks are leading the charge in making ESG reporting mandatory for more businesses.

With an increased focus on standardized ESG reporting, companies are turning to ESG services to help them navigate this complex regulatory environment. These services include tools that ensure businesses can meet the new reporting requirements, such as integrated data systems that track environmental impacts, social initiatives, and governance practices.

As the pressure mounts for companies to comply with these regulations, the demand for ESG advisory services and compliance solutions is expected to rise. Organizations will need to demonstrate how their activities align with global ESG standards, ensuring they’re not only following the law but also maintaining their credibility with stakeholders.

4. Focus on Climate Action and Net-Zero Commitments

Climate change remains one of the most pressing global challenges, and 2024 is seeing a renewed commitment from businesses to take concrete actions toward net-zero emissions. The growing urgency of climate change, driven by rising global temperatures and natural disasters, is prompting organizations to adopt more ambitious climate action plans.

ESG services are evolving to help businesses set realistic net-zero targets, measure carbon footprints, and track progress toward sustainability goals. Tools like carbon accounting platforms and sustainability analytics are gaining prominence, enabling companies to reduce their environmental impacts and transition to renewable energy sources.

Additionally, businesses are increasingly engaging in climate-related financial disclosures to communicate their climate risks and mitigation strategies. By 2024, it’s expected that more organizations will embrace climate action as a core part of their ESG framework, further solidifying their commitment to a low-carbon economy.

5. The Growing Importance of Social Impact and Equity

In 2024, social issues are taking center stage within the ESG movement. The global pandemic, social justice movements, and increasing awareness of workplace inequality have all contributed to heightened attention on the social aspect of ESG. Companies are now expected to demonstrate a commitment to diversity, equity, and inclusion (DEI) and take active roles in addressing systemic social challenges.

ESG services are evolving to help businesses assess their social impact and create initiatives that promote fairness, inclusion, and community well-being. These services include solutions for measuring and improving employee diversity, supporting local communities, and promoting equitable access to resources and opportunities.

More businesses are implementing social impact programs that focus on issues such as gender equality, racial diversity, fair wages, and access to education. In 2024, we’ll see even more companies develop targeted social strategies to address these challenges, ultimately creating a more inclusive and just world.

6. Greater Focus on Supply Chain Transparency

In recent years, supply chain management has come under scrutiny, with businesses being called out for sourcing from suppliers that engage in unethical or unsustainable practices. In 2024, companies are putting greater emphasis on supply chain transparency and responsibility, recognizing that their ESG performance is not only about what happens within their own operations but also in their broader supply chains.

ESG services are helping businesses gain visibility into their supply chains, ensuring they work with suppliers who meet high environmental, social, and governance standards. Technology tools like supplier scorecards, risk assessments, and blockchain-based supply chain tracking are increasingly being used to identify potential risks, from environmental harm to labor abuses.

In 2024, companies are expected to place a higher priority on responsible sourcing, ethical procurement practices, and reducing their overall supply chain impact. Transparency and traceability will become critical components of ESG strategy as businesses seek to ensure that every link in their supply chain aligns with their sustainability and ethical commitments.

7. ESG as a Driver of Innovation and Competitive Advantage

In 2024, more companies are recognizing that ESG is not just about risk mitigation—it’s also a powerful driver of innovation and competitive advantage. Consumers, investors, and other stakeholders increasingly expect companies to lead with purpose and address global challenges like climate change and inequality. This shift is encouraging organizations to view ESG as an opportunity for innovation, differentiation, and growth.

Businesses are using ESG services to develop new sustainable products and services, tap into emerging markets, and leverage their ESG commitments as a unique selling point. For example, eco-friendly products, green technology innovations, and ethical brands are gaining traction with consumers who are willing to pay a premium for companies that align with their values.

By integrating ESG into their core business strategies, companies are positioning themselves for long-term success in an increasingly conscious marketplace, where sustainability and ethical practices are key to attracting customers, investors, and top talent.

Conclusion: ESG Services in 2024 and Beyond

As we move further into 2024, Environmental, Social, and Governance (ESG) services will continue to evolve and play an increasingly integral role in business success. From the rise of technology and AI-driven ESG reporting to a renewed focus on climate action, diversity, and supply chain transparency, these trends are reshaping how companies approach sustainability and ethical practices.

[radpandamiracle]

Fcccdxffdse raoea sfdr -33322-4445 on paid fcdx rapists dcff on paid loc. On. Paid. Loc. Set.npwid. Set up. Loc.

[crazevil]

스타트업과 벤처 캐피탈이 꼭 알아야 할 ESG의 진실 세 가지

ESG, 스타트업과 VC가 꼭 알아야 할 3가지 진실

안녕하세요, 여러분! 오늘은 요즘 많이 화제가 되고 있는 ESG(Environmental, Social, Governance)와 관련하여 스타트업과 벤처 캐피탈(VC)들이 빠지기 쉬운 몇 가지 오해를 해소해볼까 합니다. ESG는 단순히 유행을 따르는 것이 아니라, 성장과 지속 가능성을 동시에 이룰 수 있는 중요한 요소입니다. 그럼 바로 시작해보겠습니다!

1. ESG는 '임팩트 투자'와 동일하지 않다

먼저, ESG와 임팩트 투자를 혼동하는 경우가 많습니다. 임팩트 투자란 특정한 사회적 또는 환경적 결과를 목표로 하는 투자를 의미합니다. 흔히들 임팩트 투자를 중점적으로 하면 투자의 기회와 수익이 제한될 것이라고 생각합니다. 하지만 ESG는 모든 산업과 회사의 운영 성과와 리스크 관리에 영향을 미치는 요소입니다.

ESG는 재무적 수익을 추구할 뿐만 아니라, 회사의 장기적인 운영과 리스크 관리에 중점을 둡니다. 강력한 ESG 관행을 갖춘 기업은 장기적으로 재무적 성과가 더 좋을 수 있습니다. 더불어 규제와 공시 요구사항이 증가하면서 ESG는 모든 투자자에게 필수적인 요소가 되고 있습니다. 소비자, 직원, 기타 이해관계자들로부터 투명성과 책임감을 요구받는 시대, ESG는 선택이 아닌 필수가 되었습니다.

2. ESG는 시드 및 초기 단계 스타트업에도 중요하다

많은 사람들이 ESG가 초기 단계 스타트업에게는 중요하지 않다고 생각하지만, 이는 사실과 다릅니다. 오히려, ESG 원칙을 일찍부터 적용하면 강력하고 지속 가능한 성장을 위한 기초를 다지는 데 큰 도움이 됩니다. 미리 준비하면 나중에 발생할 수 있는 비용을 효과적으로 관리할 수 있습니다. 예를 들어, 직원 복지, 배출 통제, 공급업체 선택, 원자재 조달, 데이터 보안 등.

또한, 시드 단계의 투자 결정은 회사 내 숙련된 인재에 의해 이루어집니다. ESG를 우선시하는 스타트업은 더 나은 인재를 유치하고 유지할 수 있습니다. 이는 특히 책임감 있는 회사를 선호하는 젊은 층에게 더욱 매력적일 것입니다. 예리한 투자자라면 이러한 스타트업의 통찰력과 리스크 관리 능력을 높이 평가할 것입니다.

3. ESG는 '갖추면 좋은 것'이 아닌 '반드시 필요한 것'이다

마지막으로, ESG는 단순히 따라가면 좋은 트렌드가 아닌, 반드시 필요한 경영 전략입니다. 블랙록(BlackRock)의 래리 핀크(Larry Fink)가 말했듯이, "지속 가능성은 환경주의자가 되기 위해서가 아니라 자본주의자로서 필요하다"고 했습니다. 이는 투자자들이 이해해야 할 중요한 사실입니다.

ESG는 리미티드 파트너(LP)들과 새로운 규제, 예를 들어 지속 가능 금융 공시 규정(SFDR)과 기업 지속가능성 공시 지침(CSRD) 등의 압박을 받고 있습니다. 많은 기관 투자자들은 강력한 ESG 관행을 필수 투자 기준으로 삼고 있으며, 유럽의 투자 환경도 이를 지원하는 방향으로 바뀌고 있습니다.

결론

스타트업들이 ESG를 통해 지속 가능하고 책임감 있는 방식으로 성장할 수 있도록 접근성을 높이고 프로세스를 간소화하는 것이 중요합니다. ESG는 곧 전략적 필수 요소가 되며, 초기 단계부터 이를 도입하는 것은 장기적인 성공을 위해 필수적입니다. 지속 가능한 행성을 위한 투자 없이는 우리가 기대하는 미래도 존재하지 않을 것입니다.

앞으로 더 많은 ESG 관련 유용한 자료와 인사이트를 제공할 예정이니 많은 관심 부탁드립니다. 여러분의 스타트업 여정에 도움이 되길 바랍니다!

참고 자료: - ESG for seed-stage startups – the first 3 steps to build a solid ESG strategy - Antler Sustainability toolkit - Balderton ESG toolkit

여러분의 성공적인 ESG 도입을 기원합니다!

[zehub]

SFDR : les fonds article 9 dans le creux de la vague

Les fonds durables semblent ne plus faire recette, même s’ils restent dominants en parts de marché en Europe.

[esgtrends]

Inrate's Business Activity Impact (BAI) Assessment

Move beyond biased reports. Leverage Inrate’s BAI to objectively assess a company’s environmental & social impact for informed ESG investing. Discover sustainability champions and laggards based on real over reported impact.

Inrate’s Business Activity Impact (BAI) assessment provides an objective evaluation of a company’s environmental and social impact by analyzing the actual business activities rather than relying solely on corporate disclosures.

Key Features:

Objective Analysis: BAI uses a proprietary framework to assess the real impact of business activities, helping investors identify sustainability leaders and laggards. 

Balanced Approach: The assessment balances financial materiality with impact, aligning with leading sustainability regulations like the EU Taxonomy, CSRD, and SFDR.

Granular Insights: Inrate offers detailed impact scores for each corporate business activity, covering aspects like GHG emissions, resource exploitation, and social equity.

Mitigating Bias: By focusing on actual business activities, BAI reduces susceptibility to greenwashing and biased reporting.

Customizable Data Models: Inrate’s research can be tailored to meet specific investment objectives and regulatory requirements.

Features of Inrate’s Business Activity Impact (BAI)

1. Align with Leading Sustainability Regulations 

2. Mitigate Bias

3. Reduce Susceptibility to Greenwashing

4. Discover Sustainability Leaders and Laggards

Inrate’s BAI assessment empowers investors with actionable insights, enabling them to make informed decisions based on the true sustainability impact of their investments.

Why Choose Inrate: 1. Impact Lens 2. Flexible Data Models 3. Dedicated Client Support 4. Regulatory Alignments

Read More : https://inrate.com/esg-data-solutions/inrates-business-activity-impact/

About Inrate:

Inrate, a Sustainability Data and ESG Ratings company, helps financial institutions view sustainable finance from an “impact” lens. The contemporary responsible investor needs data that supports a variety of use cases and stands up to scrutiny. Inrate scales the highest quality and standards and deep granularity to a universe of 10,000 issuers, allowing portfolio/fund managers, research, and structured product teams to make confident decisions.

[esgdatainrate]

Understanding the Role of ESG Data in Sustainable Finance

In today’s investment landscape, Environmental, Social, and Governance (ESG) data has become indispensable for making informed and responsible investment decisions. As investors increasingly prioritize sustainability, the demand for comprehensive ESG data and solutions has surged.

Understanding ESG Data

ESG data encompasses a wide range of metrics that evaluate a company’s environmental impact, social responsibility, and governance practices. This data is crucial for investors aiming to align their portfolios with sustainable and ethical standards.

Why ESG Data Matters

Informed Decision-Making: ESG data provides investors with the insights needed to assess the sustainability and ethical impact of their investments. This leads to more informed and responsible investment choices.

Risk Management: By analyzing ESG data, investors can identify potential risks related to environmental, social, and governance issues, helping them mitigate these risks effectively.

Regulatory Compliance: With increasing regulatory requirements, such as the EU Taxonomy and SFDR, having access to reliable ESG data ensures compliance and transparency.

Inrate’s ESG Data Solutions

Inrate offers a comprehensive suite of ESG data solutions designed to empower investors with the tools they need to navigate the complexities of sustainable investing. Their solutions cover a broad spectrum of ESG metrics, providing deep insights into company performance across various indicators.

Unmatched Granularity: Inrate’s ESG data delves beyond basic metrics, offering detailed insights across environmental, social, and governance categories.

Customization: Tailor your ESG analysis to align with your specific values and investment goals, moving beyond generic assessments.

Transparency: Inrate ensures transparency by providing clear rationales behind every insight, empowering investors to make confident decisions.

The Future of ESG Investing

As the focus on sustainability continues to grow, the role of ESG data in investment decisions will only become more significant. Investors need to stay ahead by leveraging robust ESG data solutions that offer transparency, reliability, and comprehensive insights.

For more information on how Inrate can help you achieve your sustainable investment goals, visit their ESG Data Solutions page.

[educationisimp0]

Understanding the Sustainable Finance Disclosure Regulation (SFDR) of the EU 

The European Union (EU) has joined the net-zero movement to introduce financial disclosure standards through the NFRD and the CSRD because it takes sustainability and climate change seriously. The Sustainable Financing Disclosure Regulation, or SFDR, was introduced by the European Union in 2021 to highlight sustainable financing in the EU. Financial institutions must disclose their PAI, including greenhouse gas emissions, biodiversity, waste management, and human rights, to adhere to the SFDR framework. PAI disclosures are becoming increasingly crucial, and companies that don't disclose or don't comply with the fundamental criteria could suffer multifaceted short- and long-term implications.