CFA Institute is developing ESG Disclosure Standards - volunteers needed!
CFA Institute is offering a great opportunity to help in the work towards establishing a new ESG-focused industry standard. This standard aims to provide greater product transparency and comparability for investors by enabling asset managers to clearly communicate the ESG-related features of their investment products. You do not have to be a CFA Institute member to volunteer in this process.
With input from a volunteer working group, CFA Institute has developed a consultation paper and is seeking feedback on the proposed scope, structure, and design principles for the forthcoming voluntary, global Environmental, Social and Governance (ESG) Disclosure Standards for Investment Products.
Any individual, group, or organization is welcome to submit their comments. Comments should be provided using this response form and must be submitted in word format to standards@cfainstitute.org by 19 October 2020. Comments will be posted and will help shape an exposure draft, an initial version of the standard, which CFA Institute plans to issue in May 2021.
In addition to comment letters, CFA Institute is seeking individuals to take part in volunteer committees to support the next phase of the Standard’s development. Volunteers are able to apply by 23 September 2020. The following volunteer opportunities are open:
ESG Verification Subcommittee Chair FY21
ESG Verification Subcommittee Member FY21
ESG Technical Committee Chair FY21
ESG Technical Committee Member FY21
The ESG Disclosure Standard defines six “ESG-related features” that an investment product should have one or more component of:
ESG Integration: Explicitly considers ESG-related factors that are material to the risk and return of the investment, alongside traditional financial factors, when making investment decisions.
ESG-Related Exclusions: Excludes securities, issuers or companies from the investment product based on certain ESG-related activities, business practices, or business segments.
Best-in-Class: Aims to invest in companies and issuers that perform better than peers on one or more performance metrics related to ESG matters.
ESG-Related Thematic Focus: Aims to invest in sectors, industries, or companies that are expected to benefit from long-term macro or structural ESG-related trends.
Impact Objective: Seeks to generate a positive, measurable social or environmental impact alongside a financial return.
Proxy voting, Engagement and Stewardship: Uses rights and position of ownership to influence issuers’ or companies’ activities or behaviors.
“The Standard will primarily focus on disclosure requirements for investment products with ESG-related features so that investors can more comprehensively evaluate whether or not an investment product will meet their needs,” said Chris Fidler, Senior Director, Global Industry Standards, CFA Institute.
Please also check our events page on a webinar CFA Institute is organizing 15th September with an overview of the consultation paper.
You can find more information here. Please contact standards@cfainstitute.org with any questions.
We recommend warmly taking this interesting opportunity to make a difference in the ESG field!
Source: CFA Institute