The last of our 4 part Philip Lee Green Finance Series looks at
the integration of the EU Green Deal measures. In Part 3 we touched
on the importance of preventing greenwashing to ensure investor
trust and the implications the measures have for the banking sector
in particular. The Taxonomy and disclosure framework under the SFDR
and NFDR are fundamental to achieving this.
The ethical finance and ESG movements have grown in strength and
importance since their emergence as primarily a negative screening
criteria and largely being viewed as a PR tool for companies.
Institutional and retail investors are now demanding more than
simply the exclusion of munitions or tobacco as part of ethical
portfolios. Investors now want to know the extent to which a
company integrates ESG, climate and other ethical factors, such as
the SDGs into the decisions it makes. But they also want
qualitative and quantitative evidence of the impact this is having.
Divestment from fossil fuels,
