Funds Industry Report - Flipbook - Page 25
Ronan Kelly Grant Thornton
Irish Life Investment Managers announced
able
economic
activities
and
sustainable
that the company will convert their entire
investable assets in-house and on a voluntary
book of assets under discretionary control to a
basis.
responsible investing approach. By the end of
December, the company will have over €15bn
We expect these issues to be addressed in
in assets under management which considers
2020 with the roll-out of the EU Taxonomy for
environmental, social and governance (ESG)
Sustainable Activities - which will make
factors in their investment approaches.
sustainable investment much more transparent, while also increasing regulation and pres-
Euronext, which manages the Irish Stock
sure on rms to declare their activities.
Exchange market along with Amsterdam,
Brussels, London, Lisbon, Oslo and Paris,
The Taxonomy will identify economic activities
announced that it is launching a new Euron-
that substantially contribute to one or more
ext green bonds section across its six markets
environmental objectives. This will include
and that it is basing the initiative out of Dublin.
activities that have a positive impact on the
environment
(such
as
renewable
energy
The Sustainable Investment Forum (SIF)
production). It will also include economic
published its 2nd Annual State of Play Respon-
activities that may continue to have a negative
sible Investment Report. It shows that there
impact on the environment, but where these
has been considerable growth in Responsible
activities have substantially reduced that neg-
Investment practices across leading Irish
ative impact. This will enable polluting sectors
investment
having
to move onto greener pathways. Final negotia-
Responsible Investment policies which incor-
tions between the European Parliament and
porate ESG frameworks (up from 81% in 2018).
the Council on this proposal started on 23
managers
with
92%
Sustainable Investment Strategies
Are Moving From The ‘Why’
To The ‘How’
October. Agreement is expected before the
end of the year. The rationale behind the
taxonomy is clear - a standardised and trusted
taxonomy will benet both industry and investors, but will increase regulatory reporting
Two areas for concern for the Industry in 2019
requirements.
around sustainable investing has been in relation to reporting and declaring activities:
As the Industry is impacted by increased scrutiny on its sustainable activities, some of the
While, the overall availability and quality of
issues at the top of the minds of company
ESG data has grown in recent years, so too has
leaders are;
the number of companies ‘green washing’
CEO’s - Could we lose market sentiment if
their businesses so that they appear more ESG
we choose not to offer ESG products or servic-
friendly than they are in reality. Coupled with
es?
that is the fact rms presently identify sustain-
CIO’s - Do we need to improve our data
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