Opinion Piece
The European Banking Authority (EBA) is increasingly criticizing financial institutions for greenwashing, especially in relation to investments in renewable energies, while at the same time supporting fossil fuel projects.
The introduction of a common taxonomy and more transparency, as required by the EU’s SFDR regulation, aims to make greenwashing more difficult and allow investors to better compare investments by ESG factors. Principal adverse impact (PAI) disclosure requires more accurate quantification of sustainability risks. The non-standardized ESG reporting and proprietary data from ESG rating agencies currently lead to divergent ESG ratings.
The European Single Access Point (ESAP), which will be introduced by 2025, is intended to tackle these problems.
Horn & Company will analyze and compare the PAI data of European banks to help converge and close data gaps.
Our e-paper offers further insights into this topic. You can also find out how you can optimize ESG integration in your investment strategies.
Stay tuned.
