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ESG Portfolio Diagnostic Solution
Identifying ‘greenwashing’ risks in your portfolio
Main requirements of the key regulatory packages, which have been introduced by the EU as a part of legal framework for ESG related matters:
SFDR
- Entity level disclosures (website) on adverse sustainability impacts
- Remuneration policies disclosures
- Pre-contractual disclosures on integration of sustainability risks
- Financial products disclosures (products-level / periodic reports)
Taxonomy
- List of environmental targets to be pursued by companies
- Criteria to be met by the business to be classified as sustainable
- Rules regarding transparency and reporting
NFRD / CSRD
- The aim of the Directive is to implement sustainability / ESG issues into non-financial reporting of both financial and non-financial institutions
MiFID II
- Consideration of ESG aspects while defining the target markets and assessment of suitability and appropriateness
As the ESG Compliance landscape evolves, greenwashing risks are increasingly becoming a reputational and financial threat. Financial regulators are enhancing disclosure and reporting guidelines, mandating transparency on ESG investment strategies, the selection criteria used, and potential associated risks.
Supervisory bodies are scrutinising overly optimistic ESG labels and activist investors are speaking out when they sense empty promises.
Financial institutions have already been fined for publishing misleading statements in relation to their sustainability credentials.
Meanwhile, the associated risks of not disclosing detailed ESG credentials range from a downturn in your competitiveness to the perception that your organisation has something to hide.
PwC’s ESG Portfolio Diagnostic Solution is a technology enabled, ‘horizon scanning’ solution that enables identifying potential greenwashing risks within portfolios and value chain.
Key benefits
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