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Sustainable financial products are on the rise. As investor demand is increasing, the importance of sustainably-oriented financial products is continuously growing and the rapid developments have led to a variety of environmental, social and governance (ESG) investment solutions. At the same time, increased regulatory obligations in the area and recent investigations by regulators around the world have brought attention to the risk of ‘greenwashing’ associated with greater transparency. In our study, the sustainability foundations and disclosures of more than 220 ESG funds were examined.
The study is based on the investigation of a representative sample of the publicly available official documentation of more than 220 ESG-related funds distributed across the EU from 20 providers based in Switzerland, the EU and internationally. Our analysis focused primarily on the legally disclosed information in the funds’ prospectuses, with complementing ESG information from factsheets and other publicly available relevant documents.
«Our study has led to the conclusion that current sustainability disclosures for funds aren’t yet serving their purpose, which is to provide transparency and prevent greenwashing.»
PwC has designed a framework and a dedicated questionnaire for developing credible sustainable products, ensuring sufficient transparency and setting up effective monitoring and controls for the implementation of the ESG strategy. Our approach is based on our analysis and expertise, the various regulatory expectations and best market practices. We support our clients in their ESG transformation by helping them in every aspect, from the initial ESG product design to the disclosure of ESG elements.
Learn more about our findings and how PwC can support you to screen and green your product portfolio in order to achieve regulatory alignment and impact.
https://pages.pwc.ch/core-asset-page?asset_id=7014L0000004zIIQAY&embed=true&lang=en
Partner, Sustainability & Strategic Regulatory Leader, PwC Switzerland
Tel: +41 58 792 45 23
Senior manager, Sustainability & Strategic Regulatory, PwC Switzerland
Tel: +41 58 792 26 87