On Tuesday, officials raided Frankfurt offices of Deutsche Bank’s DWS unit on allegations that it was misleading investors about “green” investments.
Following the raid, deVere Group CEO Nigel Green has called for an effort by regulators globally to come together and stamp greenwashing out, particularly as more investors continue to consider ESG factors in their investments.
“But to make sure this tsunami of private money is put to work in the correct way, it’s imperative that global regulators work together on an international framework of standards,” Mr Green said.
“This will help prevent greenwashing – misleading environmental claims – which could damage the credibility needed to guarantee the inflows are maintained.
“Although watchdogs are increasing scrutiny on alleged greenwashing practices, more still needs to be done. We need joined-up thinking on an international level to tackle an international issue.”
Mr Green added that regulators must catch up to meet the increasing demand of ESG considerations, noting a lack of consistency in definitions and data.
“Recent events in Frankfurt highlight the urgent need for a workable global regulatory framework that will help investors reach their financial objectives whilst proactively protecting people and the planet,” he said.
It comes after a study by the Responsible Investment Association Australasia (RIAA) found that 72 per cent of Australians are concerned that responsible investors engage in greenwashing.
The RIAA said that awareness and knowledge of responsible investment among Australians had grown significantly over the past two years with 67 per cent of the population having heard of or knowing what responsible investing is, up from 50 per cent in 2020.
Eighty-three per cent of Australians now expect the money in their bank accounts and superannuation to be invested ethically and responsibly while 80 per cent expect their savings to have a positive impact on the world.
“Australians are demanding more transparency from their providers, with 75 per cent wanting to know which companies their super fund, bank or other investments are invested in,” said RIAA CEO Simon O’Connor.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
