A fintech firm has launched what it claims is the first technology tool to check whether an investment portfolio complies with the recently-agreed EU sustainable finance taxonomy – which has been called the world’s first regulatory benchmark for green financial products.
Impact-Cubed's ‘greenwash checker' tool, which covers listed markets as well as private assets, will “pre-assess” likely levels of compliance with the taxonomy which defines which funds can label themselves as sustainable or green.
The taxonomy, which applies to the majority of asset management, pension and insurance firms, will come into force in December 2021 and will hold asset managers and owners to account on investment products labelled as sustainable, green or environmentally friendly.
Impact-Cubed research advisor Antti Savilaakso said: “We anticipate asset managers and asset owners alike will want to get an early insight into what their own portfolios will look like through this lens and be able to start preparing for the disclosure requirements.”
“There is a risk for many investors that their funds could be labelled as ‘greenwash’ if they fall outside what EU regulators define as sustainable. That is why this new pre-screening service, or greenwash checker, will be an important tool for many investors”.
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