As the momentum for sustainable investing continues to grow, the need to filter out funds and investors that are built on greenwashing will continue to increase. A pioneering report by the World Wide Fund for Nature (WWF) identifies tools and services to help portfolio managers look beyond environmental, social and corporate governance (ESG) risks and assess the real world impact of their financial portfolios.
Titled “Assessing portfolio impacts: Tools to measure biodiversity and sustainable development goals (SDG) footprints of financial portfolios”, the report analyses seven up-and-coming instruments to measure ESG initiatives and generate useful information for investors. Investors can use these measures to assess the impacts of equity and loan portfolios on an absolute basis or relative to a benchmark.
