Taxonomy for responsible investments: Avoiding greenwashing

„The association of investment professionals DVFA has issued a glossary on terms and strategies around ESG investing. The definitions and explanations should be seen “as contribution to the discussion surrounding the work of the EU Commission’s technical expert group on sustainable finance”, the DVFA said.

The association said it wanted to make it easier for German investors to identify suitable ESG investment products and “help avoid greenwashing”. However, it did not want to judge the quality of funds or their suitability for certain investors. “The quality of sustainability factors cannot suitably be standardised given the very different needs of investors,” the DVFA said.

The glossary and guidelines explain many aspects of ESG, from exclusion to divestment, best-in-class and critical viewpoints. They also list possible ESG-related investments for each asset class, accompanied with critical notes.“

Source: Barbara Ottawa: IPE Investment and Pensions Europe ESG roundup, September 26th, 2018

The complete Englisch version of the taxonomy can be found here.

Other English texts: https://prof-soehnholz.com/evidence-based-investment-analysis-ebia-a-new-term-every-financial-analyst-and-investor-should-know/