By George Prior
Global regulators must work together on an international framework to stamp out potential ‘greenwashing’ as capital inflows increase, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.
The call-to-action from deVere Group’s Nigel Green comes on the back of COP26, at which governments and institutional and retail investors pledged more financing for environmental, social and governance (ESG) orientated initiatives.
Mr Green says: “COP26 has galvanized the ESG gold rush that has been taking place over the last year, as an increasing number of investors pursue profits with a purpose with sustainable investments.
“It’s the hottest investment megatrend and this is set to grow as global financial powerhouse companies are helping to unlock and mobilize the trillions of dollars of private finance that is urgently required to halt the worst effects of human-created global warming.”
He continues: “However, to ensure that this flood of private money continues and is put to work in the right way, we now need global regulators to work together on an international framework of standards.
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“This will help prevent greenwashing – misleading environmental claims – which could damage the essential credibility to guarantee the inflows are maintained
“Although regulators have recently been ramping up scrutiny in regard to greenwashing, more still needs to be done. We need joined-up thinking on a global level to tackle a global issue. Failure to do so will severely compromise the mission.”
deVere’s calls follow the organization’s pledge to position $2bn of assets under advisement into environmental, social and governance (ESG) investments within five years.
The Group is also one of 18 founding signatories of the UN-backed Net Zero initiative, the international alliance of powerhouse global finance companies that will help accelerate the transition to a net zero financial system. Its membership means it is committed to “aligning all relevant products and services to achieve net zero greenhouse gases by 2050 and to set meaningful interim targets for 2025.”
The organization has also confirmed that it “aims to significantly speed-up its own meeting of these Science Based Targets to reduce operational emissions in line with limiting global temperature rises to 1.5 degrees Centigrade.”
Mr Green concludes: “COP26 has put environmental concerns front and center, now we need regulators to help shore-up the industry to ensure the avalanche of private money is not cut off at this critical time.
“This means internationally-approved, enforceable anti-greenwashing rules.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.