ESG needs better disclosure standards

Geoff Waring ESG

1 June 2021
| By Chris Dastoor |
image
image
expand image

Fund managers should be subject to more rigorous standards to ensure their disclosures about environmental, social and governance (ESG) investing are accurate, according to Stoic Venture Capital.

Dr Geoff Waring, Stoic Venture Capital partner, said Australia should take the lead of the United States, European Union and United Kingdom by ramping up its scrutiny of ESG disclosure and compliance.

“Many investors are concerned about the hazy reporting of fund managers when it comes to their ESG investments,” Waring said.

“There is a lack of consistency and regulation in how funds report ESG investments and how ESG principles are integrated into their investment decisions and strategy and the impact this has on their returns.”

This was important given the growth of responsible investing which now accounted for 37% of $3.135 billion in assets under management, according to the Australian Bureau of Statistics (ABS).

“Stronger, more consistent guidelines and more information sharing would reduce the risk of misleading marketing claims about ESG investing,” Waring said.

“It would also push investor ESG preferences more effectively through fund managers down to the individual investee companies where many key decisions are being made.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 weeks 6 days ago

Interesting. Would be good to know the details of the StrategyOne deal....

3 weeks 3 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

1 month 1 week ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 weeks 2 days ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 weeks 1 day ago

Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best ...

1 week 2 days ago

TOP PERFORMING FUNDS