Sustainable Investing: The Outlook for 2022 – ThinkAdvisor

Sustainable Investing: The Outlook for 2022 ThinkAdvisorSustainable Investing: The Outlook for 2022 ThinkAdvisorSustainable Investing: The Outlook for 2022 ThinkAdvisor

Bloomberg News reports that the agency has been asking money managers, under Chairman Gary Gensler to explain the standards they use to classify funds as ESG-focused. Bloomberg News reported that the agency has been asking money managers to explain the standards they use to classify funds as ESG environmental, social and governance-focused. The new position of Senior Policy advisors for Climate and ESG has been created. In addition, the DOL will likely finalize new rules for ESG investments next year that will make it easier for 401k plans to invest based on ESG factors. The rule, which was already proposed, reverses a Trump-era rule. Advancing Standards “Getting to standardization, the harmonization, which has eluded [asset management] industries will be huge,” stated William Burckart, president and chief operating officer of Green Alpha Advisors, an applied research consulting firm whose mission it is to help investors understand how their portfolios can benefit from healthy financial, environmental, and social systems. The consolidation of several standard-setting entities is expected to make 2022 a year more successful. This includes the merger of the Sustainability Accounting Standards Board with the International Integrated Reporting Council to form the Value Reporting Foundation (VRF), and by June 2022 the consolidation of VRF and Climate Disclosure Standards Board to the new International Sustainability Standards Board, (ISSB). The ISSB is dedicated to developing a global standard of high-quality sustainability disclosure standards that will meet investors’ information requirements.

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