To avoid Greenwashing, Impact Measurement is key
The recent study performed by Inrate along with INFRAS for Greenpeace showed that the market of financial products described as sustainable is growing rapidly. However, without the use of reliable sustainability impact data, the positive impact on sustainable development remains questionable. Indeed, the examined sustainability investment funds hardly succeeded in steering significantly more capital towards a sustainable economy. Measured by the Inrate ESG impact ratings, the funds only improved the impact of investments on the environment and society to a very limited extent. To ensure that investors may achieve a positive sustainability effect, they need data that reliably assess the impact of a company or an investment on the environment and society.
The new EU sustainable finance regulations provide standards and guidelines for the disclosure of sustainability information. The regulations underline the importance of the sustainability impact and will improve sustainability-related transparency considerably. However, EU compliance data – for various reasons – cannot replace consistent impact measurements. Only reliable, scientific-based impact assessments allow effectively improve the sustainability impact of investments.