The potential impact of a disorderly transition to a low carbon economy is a top factor driving financial market regulators to accelerate and focus their efforts on climate-related risks, said Tamara DeMos, chair of the Canadian Association of Pension Supervisory Authorities’ environmental, social and governance committee and managing director of private pensions. Speaking during the […]
At the Alberta Investment Management Corp., diversity, equity and inclusion has catapulted up the priority list when it comes to investment strategy. While DEI has long played a role in the decisions of the AIMCo and other institutional investors, says Alison Schneider, the organization’s vice-president of responsible investing, she credits the coronavirus pandemic for catalyzing […]
The Chartered Financial Analyst Institute’s draft voluntary environmental, social and governance disclosure standards are vulnerable to greenwashing, warns the Investment Funds Institute of Canada. In an open letter to the CFA regarding its drafted voluntary regulations, the IFIC is criticizing the proposed standards’ failure to define what does and doesn’t qualify as an ESG investment. […]
Morningstar Inc. is taking aim at the disparate ESG disclosure requirements still hampering the investment industry. In a recent report, Morningstar explored some of the issues hindering ESG measurement tools. “Simply put, ESG disclosures from issuers are all too often inconsistent and non-comparable and material information is not always available.” One key problem, it noted, […]
While investors want more disclosure and transparency, it can come with consequences. When the Securities and Exchange Commission launches an investigation of a firm for financial fraud, it’s voluntary for managers to disclose this. And even when the investigation doesn’t result in charges, firms that voluntarily disclose they were under investigation have significant negative returns […]
And why we need better disclosure.