Latest news with #SustainableFinanceDisclosureRegulation
Forbes
22-04-2025
- Business
- Forbes
The Role Of Sustainable Investing In Modern Financial Portfolios
Paula Thielen is the managing partner and financial advisor at Thielen & Associates, Inc. getty We've all heard the buzzwords and seen the headlines: Sustainable investing is on the rise. But what does it really mean for your investment portfolio? A recent Morgan Stanley study found that over 50% of individuals feel they have limited knowledge about how to start sustainably investing, while 43% of respondents said they lacked financial advice on this topic. As a financial professional, I see the growing interest in sustainability as both an opportunity and a challenge for investors. Let's explore the key trends, regulatory pressures and governance factors shaping this movement, and consider the benefits and challenges of sustainable investing. Sustainable investing has gained significant traction over the past decade. This surge is driven by a heightened awareness of environmental and social issues, coupled with the financial advantages of investing in companies that prioritize sustainability. Assets under management in sustainable investments have risen substantially over the past decade. Lately, I've observed firsthand how Millennials and Gen Z are driving this trend. A study performed by Chase Bank found that 36% of survey respondents (either Millennials or Gen Z) are interested in integrating sustainable investing into their current portfolios. They are not just looking for financial returns but also want their investments to reflect their personal values. This shift has led to a proliferation of sustainable investment options, from green bonds to impact funds, catering to a variety of investor preferences. Around the globe, regulatory bodies are stepping up their focus on sustainable investing, introducing new rules and guidelines focused on transparency and accountability. These regulations aim to combat greenwashing so investment products marketed as sustainable truly adhere to their claims. In the United States, the SEC has implemented stricter climate-related disclosure requirements, while Europe's Sustainable Finance Disclosure Regulation (SFDR) seeks to enhance transparency in the financial sector. Navigating these regulations can be complex. As an advisor, I often find myself educating clients about the importance of these rules and how they protect their investments. For example, the SFDR requires detailed disclosures on how sustainability risks are integrated into investment decisions, which helps investors make more informed choices. Good governance is a cornerstone of sustainable investing. Investors are increasingly looking for companies with robust governance practices, including diverse and independent boards, transparent executive compensation and strong risk management processes. These factors are crucial for ensuring that companies are managed responsibly and can deliver long-term value to shareholders. Effective governance also helps mitigate risks associated with environmental and social issues, making it a key consideration for sustainable investors. In my experience, companies with strong governance frameworks tend to perform better over the long term. They are more resilient to crises and better positioned to capitalize on opportunities. Sustainable investing offers a multitude of benefits, both financial and nonfinancial. Companies that prioritize sustainability often exhibit better long-term performance, as they are better equipped to manage risks and seize opportunities related to environmental and social trends. Additionally, sustainable investments can drive positive societal outcomes, such as reducing carbon emissions, promoting social equity and enhancing corporate transparency. This dual focus on financial returns and positive impact makes sustainable investing an appealing option for many investors. Despite its advantages, sustainable investing is not without its challenges, such as the lack of standardization and the difficulty of measuring performance. Furthermore, there is ongoing debate about the financial performance of sustainable investments compared to traditional investments. However, growing evidence suggests that sustainable investments can deliver competitive financial performance while addressing critical global challenges. As an advisor, it's common to encounter skepticism from clients who are new to sustainable investing. They worry about potential trade-offs between sustainability and returns. I explain that it's all about finding the right balance and aligning investments with one's financial goals and personal values. Sustainable investing is a fundamental shift in how we think about finance and its role in society. By integrating these factors into investment decisions, we can potentially achieve financial success and positive societal impact. I am excited to be part of this movement and to help clients learn more about sustainable investing. Whether you're a seasoned investor or just starting out, there are numerous opportunities to align your portfolio with your values and contribute to a more sustainable future. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. This material was created by Thielen & Associates, Inc. for use by Forbes and does not represent the views and opinions of Avantax Wealth Management or its subsidiaries. Please view all applicable disclosures here. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Reuters
31-03-2025
- Business
- Reuters
Allianz scraps nuclear, military exclusions to back Europe's rearmament drive
LONDON, March 31 (Reuters) - Germany's Allianz Global Investors has dropped two exclusions blocking its sustainable funds from investing in defence, becoming one of the first major European asset managers to change their policies to help finance the region's rearmament. AGI wrote to its clients late last week to advise that its sustainable funds could now buy into companies that earned more than 10% of their revenue from military equipment and services. here. Removal of a second exclusion means they can also now invest in nuclear weapons activities as long as they are within the Nuclear Non-Proliferation Treaty, which seeks to stop the spread of nuclear weapons-making capabilities. The investor had recognised the restrictions were too "onerous", said Matt Christensen, AGI's global head of sustainable and impact investing, in an accompanying blog post published online. "Nuclear weapons are a critical and credible deterrent to large-scale conflict and, in Western countries, the production of nuclear weapons is fully integrated into the industry and cannot be separated," Christensen added. AGI, part of insurer Allianz ( opens new tab, manages about 570 billion euros ($615.77 billion) in assets. The changes come amid a broader drive by European investors to reconsider their policies on investing in defence, under pressure from clients and some politicians to loosen restrictions. Funds badged as sustainable have come under particular scrutiny, as they often have stricter exclusions. Few asset managers have actually changed their policies so far. Defence stocks have soared in value this year as European countries, under pressure from U.S. President Donald Trump, have vowed to increase military expenditure, with Germany unveiling a massive ramp-up in defence and infrastructure spending. AGI's changes apply to funds classified as 'Article 8' under the European Union's Sustainable Finance Disclosure Regulation, and would apply in most cases, the investor said in its letter to clients. Article 8 is the broadest category for sustainable funds under the EU rules, while the higher Article 9 category refers more directly to sustainability. AGI said several exclusions would still apply, including to companies that severely violated international rules and to manufacturers of chemical and biological weapons. ($1 = 0.9257 euros)
Yahoo
20-03-2025
- Business
- Yahoo
BlackRock Removes ESG from European Funds Worth $51B
BlackRock Inc. (BLK) has renamed or changed the methodology of 135 ETFs and funds in response to a 'client-informed approach' to European Securities and Markets Authority (ESMA) fund-naming guidelines. The changes will see the world's largest asset manager remove the "ESG" moniker from its iShares MSCI ESG Screened UCITS ETF range and BSF Systematic ESG World Equity Fund, comprising 51 strategies housing $51 billion of assets under management (AUM). The decision to remove ESG from its "light green" offering was made in response to client feedback expressing a preference for changing the name rather than the methodology of the strategies. The ETF range will continue to be classified Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Elsewhere, its "middling" green suite of 18 strategies housing $42 billion of AUM will signal clearer alignment with climate transition objectives. The MSCI ESG enhanced ETF range will feature the Climate Transition Benchmark (CTB) acronym, and disclosure language will be updated for the BGF European Equity Transition Fund. Finally, 60 "dark green" strategies housing $92 billion of AUM will begin implementing Paris Aligned Benchmark (PAB) exclusions. The SFDR Article 9 products that will begin including PAB criteria are the BGF ESG Multi-Asset Fund and the iShares MSCI SRI UCITS ETF range. No changes will be made to 17 funds in BlackRock's sustainable range, including its PAB suite housing just under $5 billion. The updates precede ESMA's naming rules coming into effect on May 21, requiring EU funds to fulfill additional criteria to include ESG and other sustainability-related terms in their names. In a note to clients seen by ETF Stream, the firm said, 'To adapt to these changes and refresh our European product range, we consulted with a significant number of clients, including large distributors, product selectors and portfolio managers, to seek their views and understand their preferences. 'Based on this feedback, we have focused on providing clients with transparency and, where relevant, retaining investment methodologies consistent with their preferences.' The updates coincide with similar moves by other fund promoters in Europe. MSCI found that by the end of February, the number of sustainability-named funds had already fallen around 20% since ESMA's naming guidelines were published last May. Around 84% of Europe's sustainable fund roster is impacted based on a "stringent" interpretation of the guidelines, according to research by ISS STOXX. While asset managers have updated product methodologies where feasible, the direction of travel to-date expresses a preference for renaming rather than overhauling the strategies of "light green" ESG offerings. BNP Paribas Asset Management removed "ESG" from one of its S&P 500 ETFs following similar moves by DWS and State Street Global Advisors (SSGA). Elsewhere, UBS Asset Management and DWS rebranded dozens of ETFs after MSCI renamed over 100 ESG indices. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
18-03-2025
- Business
- Yahoo
BlackRock Removes ESG from European Funds Worth $51B
BlackRock Inc. (BLK) has renamed or changed the methodology of 135 ETFs and funds in response to a 'client-informed approach' to European Securities and Markets Authority (ESMA) fund-naming guidelines. The changes will see the world's largest asset manager remove the "ESG" moniker from its iShares MSCI ESG Screened UCITS ETF range and BSF Systematic ESG World Equity Fund, comprising 51 strategies housing $51 billion of assets under management (AUM). The decision to remove ESG from its "light green" offering was made in response to client feedback expressing a preference for changing the name rather than the methodology of the strategies. The ETF range will continue to be classified Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Elsewhere, its "middling" green suite of 18 strategies housing $42 billion of AUM will signal clearer alignment with climate transition objectives. The MSCI ESG enhanced ETF range will feature the Climate Transition Benchmark (CTB) acronym, and disclosure language will be updated for the BGF European Equity Transition Fund. Finally, 60 "dark green" strategies housing $92 billion of AUM will begin implementing Paris Aligned Benchmark (PAB) exclusions. The SFDR Article 9 products that will begin including PAB criteria are the BGF ESG Multi-Asset Fund and the iShares MSCI SRI UCITS ETF range. No changes will be made to 17 funds in BlackRock's sustainable range, including its PAB suite housing just under $5 billion. The updates precede ESMA's naming rules coming into effect on May 21, requiring EU funds to fulfill additional criteria to include ESG and other sustainability-related terms in their names. In a note to clients seen by ETF Stream, the firm said, 'To adapt to these changes and refresh our European product range, we consulted with a significant number of clients, including large distributors, product selectors and portfolio managers, to seek their views and understand their preferences. 'Based on this feedback, we have focused on providing clients with transparency and, where relevant, retaining investment methodologies consistent with their preferences.' The updates coincide with similar moves by other fund promoters in Europe. MSCI found that by the end of February, the number of sustainability-named funds had already fallen around 20% since ESMA's naming guidelines were published last May. Around 84% of Europe's sustainable fund roster is impacted based on a "stringent" interpretation of the guidelines, according to research by ISS STOXX. While asset managers have updated product methodologies where feasible, the direction of travel to-date expresses a preference for renaming rather than overhauling the strategies of "light green" ESG offerings. BNP Paribas Asset Management removed "ESG" from one of its S&P 500 ETFs following similar moves by DWS and State Street Global Advisors (SSGA). Elsewhere, UBS Asset Management and DWS rebranded dozens of ETFs after MSCI renamed over 100 ESG indices. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved
Associated Press
06-02-2025
- Business
- Associated Press
Auquan Launches Industry's First AI Agent for Financial Services Sustainability Teams
LONDON & NEW YORK--(BUSINESS WIRE)--Feb 6, 2025-- Auquan, the market leader in generative AI for deep work in financial services, today announced the launch of its Sustainability Agent, the first and only AI agent purpose-built to liberate sustainability teams from tedious and time-consuming manual work. One-quarter of the top 25 global financial services firms trust Auquan to transform how they gather and analyze intelligence for critical and timely decisions and realize radically enhanced productivity gains, research coverage, and speed to insight. Every day, sustainability professionals in finance spend countless hours manually researching sustainability performance and risks, processing unstructured data into relevant insights, and writing reports instead of doing what first attracted them to the field. Auquan's Sustainability Agent changes this by autonomously completing entire workflows — from company screening and monitoring to generating framework-aligned reports and near real-time alerts — empowering teams to focus on driving sustainable value creation and enhancing stakeholder engagement. 'Sustainability teams face two critical challenges: accessing and processing reliable data on private companies quickly enough to act and staying ahead of evolving ESG regulations and investor requirements. Auquan bridges these gaps with AI,' said the head of sustainability at a top 25 global private markets firm. 'Auquan's Sustainability Agent turns what was days of manual work into insights and reports that arrive when we need them, enabling various teams to quickly assess risks, engage proactively with portfolio companies, and keep limited partners updated.' Designed with deep finance domain expertise built in, Auquan's Sustainability Agent processes information on more than 550,000 private and public companies, with new private company coverage added on demand within one hour. This unmatched coverage continuously draws from more than 2 million data sources originating in over 65 languages, including: Corporate filings and disclosures Regulatory documents Legal filings News and media coverage NGO reports and research Industry analyses and reports Web content Auquan's Sustainability Agent automatically aligns issues and insights with major sustainability frameworks including: Sustainable Finance Disclosure Regulation (SFDR) Corporate Sustainability Reporting Directive (CSRD) Sustainability Accounting Standards Board (SASB) United Nations Global Compact (UNGC) United Nations Sustainable Development Goals (SDGs) Modern slavery acts (UK, Australia, German Supply Chain Act) 'At Auquan, our mission is to liberate financial professionals from soul-sapping manual tasks and bring meaning back to their work,' said Chandini Jain, CEO of Auquan. 'With our Sustainability Agent, we're empowering teams to escape the endless cycle of manual data gathering and report writing so they can focus on the initiatives that reduce risk, improve stakeholder engagement, and create lasting impact.' Auquan's Sustainability Agent builds on the company's proven track record of helping teams transform complex, knowledge-intensive workflows. Since its launch in late 2023, the company's agentic AI platform has been empowering professionals across private markets, asset management, and other financial services firms to focus on higher-value work in areas including: Deal screening and due diligence Portfolio monitoring and risk assessment Regulatory compliance and reporting Reputational and regulatory risk monitoring Impact investing and reporting Auquan's customers realize immediate value through turnkey solutions while supporting custom implementations for unique research and reporting requirements. Teams begin saving hours of manual work within the first days of deployment. Auquan's Sustainability Agent is available immediately through direct purchase or via the Microsoft Azure Marketplace. For more information, visit About Auquan Auquan is the market leader in AI agents for deep work in financial services, redefining how finance professionals work by eliminating the manual effort involved in complex, knowledge-intensive workflows. The company's agentic AI platform transforms unstructured data into structured insights across more than 550,000 companies and other entities and completes entire jobs to be done autonomously. Leading global institutions rely on Auquan's AI agents to complete mission-critical workflows in risk monitoring, investment analysis, sustainability, and compliance, enabling their teams to focus on high-impact work and strategic decision-making. Headquartered in London with offices in New York and Bangalore, Auquan is backed by Peak XV, Neotribe Ventures, Episode 1, and Stage 2 Capital. Learn more at and follow the company @auquan_ and on LinkedIn. All brands and solution names are trademarks or registered trademarks of their respective companies. Tags: Auquan, Sustainability Agent, Chandini Jain, AI agents, agentic AI, financial services, fintech, private credit, private lenders, retrieval augmented generation, RAG AI, investment banking, private equity, artificial intelligence, AI, compliance, risk monitoring, due diligence, ESG, greenwashing, enterprises, asset management CONTACT: Media Contact Dottie O'Rourke 650-344-1260 [email protected] SOURCE: Auquan Copyright Business Wire 2025. PUB: 02/06/2025 09:20 AM/DISC: 02/06/2025 09:20 AM
