CFA Institute is excited to announce the release of the first voluntary Global ESG Disclosure Standards for Investment Products (the “Standards”) designed to enable investors, consultants, advisers, and distributors to better understand, compare, and evaluate the ESG approaches used in investment products.
This release follows an industry-wide consultation to create standards that are based on the principles of fair representation and full disclosure of environmental, social, and governance issues within the objectives, investment process, and stewardship activities of investment products.
Margaret Franklin, CFA, president and CEO, CFA Institute noted, “We’re proud to release the first edition of the Standards after a multi-stage development process to ensure the result is additive, has impact, and is meaningful to the industry."
Paul Andrews, Managing Director for Research, Advocacy, and Standards at CFA Institute commented that the standards facilitate “important disclosures that will drive greater communication between the buyers of investment products and an industry marketing increasing numbers of funds and strategies that offer an ESG-centric approach.”
The Standards apply to all types of investment vehicles, asset classes, and ESG approaches, and aim to support investors with information that is complete, reliable, consistent, clear, and accessible. They aim to identity ways to mitigate greenwashing, address the issue on a global scale, and cover all market participants.
Two rounds of public consultation informed the first edition of Global ESG Disclosure Standards for Investment Products. In August 2020, CFA Institute published an initial Consultation Paper seeking industry, regulatory, and public comment on the proposed scope, structure, and design principles for the Standards. In May 2021, CFA Institute released an Exposure Draft of the Standards. Five societies (or their ESG working groups) submitted comment letters on the Exposure Draft. In addition to providing comment letters, societies held webinars to build awareness around the Standards.
We invite you to explore Global ESG Standards for Investment Products, including sample ESG Disclosure Statements, on our website.
Thank You to Our Society Leader Volunteers
The Standards are jointly approved by CFA Institute and its ESG Technical Committee, chaired by Bruno Bertocci, Managing Director, Head of Sustainability in Active Equities, UBS Asset Management, United States.
Industry leaders who have volunteered to serve on the CFA Institute ESG Technical Committee, ESG Verification Subcommittee, and ESG Working Group have been instrumental in the development of the Standards.
We thank the following society leader volunteers for their contributions to this initiative:
- Jeroen Bos, CFA: CFA Society VBA Netherlands
- Kanol Pal, CFA: CFA Society Singapore
- Na Li, CFA: CFA Society Beijing
Help Promote the Standards
We encourage you to notify your society members of Global ESG Disclosure Standards for Investment Products using the social media assets here.
Attend the Webinar
Introducing the Global ESG Disclosure Standards for Investment Products
15 November 2021
12-1 pm ET
Join Bruno Bertocci, Managing Director, Head of Sustainability in Active Equities at UBS Asset Management and Chair of the ESG Technical Committee; Deborah Kidd, CFA, Director, CFA Institute Codes and Standard; and Chris Fidler, Sr. Director, CFA Institute Codes and Standards as they provide an overview of the Standards.
Topics will include:
- Purpose and Scope
- Benefits
- Overview of Requirements and Recommendations
- Compliance and Independent Assurance
- Relationship to Regulations and Other Codes and Standards
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