PGIM Policy Insights: Improving the SFDR
The Sustainable Finance Disclosure Regulation (SFDR) has carved a new path by requiring ESG disclosure for asset managers.
The field of sustainability analytics has benefited from better quality and availability of data in recent years, but investors still struggle with a lack of alignment among disclosure standards and reporting frameworks. In general, a mismatch still exists between disclosures in regulatory filings and voluntary disclosures provided by companies, and problems such as greenwashing and ratings divergence among ratings providers complicate matters for analysts.
PGIM Fixed Income’s Co-Head of ESG, John Ploeg, joined CFA Institutes Alpha Summit EMEA for a session on sustainability analytics and integration. During the session, Ploeg shared his perspectives on resolving the challenges with ESG and impact data, as well as insights on what the future may hold for investors who need better tools for sustainability analytics.
The Sustainable Finance Disclosure Regulation (SFDR) has carved a new path by requiring ESG disclosure for asset managers.
Is ‘Engagement washing’ poised to be the next term maligning asset management’s ESG movement?
Within this rapidly evolving environment, a basic understanding of what ESG means in an investment context is absolutely essential for all investors.