"Stricter Regulations and Rising Awareness: The Fight Against Misleading ESG Practices"
Published: 2024-07-15Welcome to today’s edition of the Daily Greenwashing Digest. Here, we explore the tricky and often dishonest practices that harm real sustainability efforts. Our goal is to keep you aware of the fake actions that threaten our planet’s future.
Regulators are getting tougher on banks for not taking climate risks seriously. The European Central Bank found that many banks are not sharing enough information about their environmental, social, and governance (ESG) practices. These banks also have investments that do not match their climate promises. This misleads people and causes financial harm, like the recent floods in Slovenia, which caused damage equal to 16% of its GDP. Expect stricter rules, fines, and limits on banks that do not follow these rules.
Investors struggle with unreliable reports on emissions, especially Scope 3 emissions from supply chains. Companies often report these emissions wrong by up to 50%. This hides the real climate risks. Tools like AI and data providers are needed to improve the quality of this data and ensure it is clear.
Young Italians under 35 are leading the way in investing in sustainable funds. Despite lower incomes, they invest a lot in ESG ETFs, especially in clean energy and climate change areas. This shows a real concern for the future, unlike the fake greenwashing practices seen elsewhere.
The European Securities and Markets Authority (ESMA) has new guidelines to stop funds from lying about their ESG claims. These rules set minimum requirements to ensure transparency and fight against dishonest greenwashing practices in finance.
Climate activists are protesting a plan for an “energy transition zone” in Aberdeen’s St Fittick’s Park. They say it is just a greenwashing trick. Despite promises of renewable energy and carbon capture, activists and local residents want to protect the last green space in a poor area, showing the project’s backers are not sincere.
Energy Absolute (EA) is under investigation for fraud by former executives. The Securities and Exchange Commission (SEC) accused these executives of lying about equipment purchases. Despite this, EA plans to issue bonds, showing their commitment to being clear and financially stable during these challenges.
Australia’s big four banks are criticized for funding fossil fuel projects with over AU$3.6 billion in 2023. Even though some banks say they will not finance fossil fuels, critics say these actions are not enough and are just greenwashing. The banks' actions show a big gap between their public climate promises and their real financial activities.
People should be aware of greenwashing because it hides the truth about environmental efforts. This can lead to wrong support and investment. Public opinion is important in holding companies accountable. When people see greenwashing, they can demand real sustainability efforts, changing corporate behavior and policies.
Think about Volkswagen’s “Dieselgate” scandal. The company said its diesel engines were eco-friendly, but it was found that they had software to cheat emissions tests. This hurt Volkswagen’s reputation and led to big fines. Public opinion changed a lot, showing the power of awareness in fighting greenwashing.
Another example is H&M’s “Conscious Collection.” The company claimed this line was sustainable, but investigations showed the environmental benefits were overstated. Public outcry forced H&M to rethink its marketing and be more transparent.
As we navigate the complex world of sustainability, it is important to stay alert against dishonest practices. By staying informed and demanding transparency, we can work towards a truly sustainable future for our children and the planet.
Thank you for joining us in today’s edition of the Daily Greenwashing Digest. Stay tuned for more updates and insights into greenwashing and sustainability.
For more information and updates, visit our website. Let’s keep holding those in power accountable and strive for a greener, more honest world.
https://www.investmentexecutive.com/news/research-and-markets/eu-banks-to-face-regulatory-action-on-climate-dbrs/Related news on 2024-07-15
- bangkokpost.com: Bangkok Post - EA launches probe into fraud claims
- morningstaronline.co.uk: Climate activists warn more protests to come if energy scheme approved in Aberdeen
- news.com.au: CommBank , NAB , ANZ , Westpac : Big four banks loan $3 . 6billion to fossil fuels projects and companies in 2023
- asianinvestor.net: Data gaps cloud Pacific state funds Scope 3 reporting mandates | ESG
- irishdentist.ie: ETFs and young people : The investment revolution in Italy
- investmentexecutive.com: EU banks to face regulatory action on climate : DBRS
- jdsupra.com: Great Fund Insights : ESMA Guidelines on fund names : Tell me your fund name , Ill tell you your fund strategy | A & O Shearman
- menafn.com: RAJANT AND ESG SOLUTIONS OFFER NEXT - EVOLUTION SEISMIC AND MICRO - SEISMIC DATA - TO - SURFACE MONITORING FOR UNDERGROUND MINES
- juniorminingnetwork.com: Silvercorp Metals Reports Operational Results and Financial Results Release Date for the First Quarter , Fiscal 2025
- prnewswire.com: Silvercorp Reports Operational Results and Financial Results Release Date for the First Quarter , Fiscal 2025
- openpr.com: Vitiligo Pipeline Insights ( 2024 ) | Clinical Trials , Latest