PRI
ESG investment
ESG investment
Fichier Détails
| Cartes-fiches | 49 |
|---|---|
| Langue | English |
| Catégorie | Finances |
| Niveau | Université |
| Crée / Actualisé | 04.05.2022 / 10.05.2022 |
| Lien de web |
https://card2brain.ch/box/20220504_pri
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Elements of Stewardship?
Tools of Stewardship?
= active ownership, ie. influence as owner of securities
max. LT value incl. value of common
- engagement
- voting
- Other
The revision of the Global Reporting Initiative (GRI) system of Standards will support companies on their transparency journey and put them in a good position to meet the emerging regulatory disclosure requirements such as the EU Corporate Sustainability Reporting Directive (CSRD) and the IFRS plans for Enterprise Value Standards
When will Revision be effective?
1.1.2023
Companies currently reporting in accordance with GRI Standards 2016 which determine their material topics based on the significance of their economic, environmental and social impacts are in general well prepared for the upcoming reporting requirements.
what are nevertheless differences?
The revision of the system of standards has been made to address gaps between current disclosure frameworks and intergovernmental expectations for responsible business practice, including human rights reporting.
It also aims at improving the overall transparency on companies’ impact on the environment and society.
3 series of GRI 2021 Standards:
- Universal standards (for all)
- focus on defining policy and how commitment are embeded
- Grievance and remediation stronger
- DD for IDing negative impacts on ESG
- Prioritization
- New Sector Standards
- 40 different
- Topics Standards
- Divided into 31
Previous reporting under Core and Comprehensive replaced by one single way of reporting.
GRI info.
Revised approach to materiality
The approach to materiality has been revised, with new guidance on how to determine material topics that incorporate the concept of due diligence and how to report on the management of these topics.
To avoid companies reporting mainly on impacts on themselves instead of how they impact the economy, environment and society, clarifications have been made regarding the reporting focus.
na (source KPMG)
what is SFDR and when was it entered into force?
What is the purpose
Sustainable Finance Disclosure Regulation, March 12, 2021
The Sustainable Finance Disclosure Regulation (SFDR) will bring a binding transparency framework for European sustainable investment products and a certain harmonization on the definition of what constitutes such products. Even if many Swiss financial institutions may not be directly in the scope of the requirements, they will feel the push towards more transparency from their clients and should learn from the struggles of their European peers.
What is SFDR about?
Who does it concern?
It aims at clarifying the duties of financial institutions regarding the integration of sustainability considerations into their investment decisions, while also promoting transparency.
What is important to note is that SFDR does not mandate specific approaches to sustainable investing. However, it does raise the bar for money managers who are looking to market their products explicitly as “sustainable” or as “impact investing” products.
NB: While there is currently no equivalent Swiss regulation, it is becoming ever more apparent where the journey is headed – both in terms of the regulatory and societal (including investor) expectations.
What is an intensity measure GEVA = Greenhouse Gas Emission per unit of Economic Value Added
EVA = EBITDA plus personnel costs
Economic Value Added (
SFDR
Who?
Purpose?
As of when?
Main disclosures?
who? FMP and FA
Purpose? transparency, comparability to prevent greenwashing
When? as of 3/2021 some later in 2023 (PAI by Jan 2023)
Main disclosures? PAI (entity and product), pre-contract product discl., website discl., product periodic discl.
PAI?
How many Indicators
negative, material or likely to be material effects on S factors, that are caused, compounded by or directly linked to investment decision and advice performed by legal entity.
32 mandatory (16 E, 16 S)
18 voluntary (11 E, 7 S)
1st mandatory reporting probably delayed to Jan 2023
