Professor of Operational Risk, Banking & Finance at UCD | Co-Inventor EU Paris-Aligned Benchmarks & EU Taxonomy-Aligning Benchmarks | Head of Data Science Hub, EU PSF2 | SVLabs Co-Lead | SFDR & SDG Zeal born at 345 ppm
Well Hugh Wheelan, this is not necessarily what your two interviewees said. I said "#SFDR is working very well (!) given its early stage" and I am not sure that Hortense Bioy, CFA would agree with you that "SFDR isn't working!" (but she may comment herself if she does). No one went on record strongly opposed to SFDR in my view. SFDR combats #GreenWashing and #SDGwashing via: - requiring the use of #WalkTheWalk benchmarks such as #PABs for Article 9 funds rather than allowing the current practice of static #TalkTheWalk benchmarks that discourage rather than encourage annual progress - forcing a focus on the actual #Impact metrics of economic #Activities rather than the green storytelling of corporations - establishing #Transparency on dozens of potentially harmful indicators of economic activities - mandating solid governance practices on #social issues such as employees and tax compliance In my view, it is in particular #SFDR's success in exposing the #TalkerOfWalks and its focus on measurement rather than storytelling which have led to opposition from a certain corners ...
SFDR isn’t working! I can’t see how the EU’s SFDR regs are going to either combat greenwashing or give the injection of green capital flows we urgently need. I applaud the EU’s regulatory ambition, but I don’t think the policy push is going in the right direction: read my latest piece for Responsible Investor: https://lnkd.in/diCAAYik And let me know what you think at: hwheelan@hotmail.com
Journalist, Co-founder and former Joint Managing Director - Responsible Investor
1 ansHi Andreas, that’s exactly what I wrote that you said. And Hortense was commenting purely on some of the potential downgrade effects from 9>8. My view (it’s an opinion piece after all) - after extensive discussion with a broad x-section of investment professionals and others, many of whom are very well-placed to know - is that it’s not working as currently conceived. I’ve tried to be fair here by gathering as many perspectives as possible, but few people want to speak on the record on this. I’m not partisan in this. I hope SFDR does work, but I’m extremely doubtful about the outcomes at the moment. I guess we’ll see eh… All the best, Hugh