Greenwashing - Understanding the Risks for Responsible Investing

Environmental, Social, and Governance (ESG) investing is a growing priority and focus for the regulators. Investment managers face increasing pressure to integrate sustainability considerations into their management practices. However, not all sustainability claims are created equal. Greenwashing, the practice of overstating or misrepresenting the environmental benefits of products, investments, or practices, poses significant reputational, financial, regulatory and – increasingly – legal risks.

This half-day virtual course will equip investment managers with the tools and frameworks to recognise, assess, and mitigate greenwashing risk in their investment processes and client communications.

Key learning objectives

• Define greenwashing and understand its various forms
• Identify key regulatory frameworks, legal requirements and global developments related to greenwashing
• Analyse ESG data sources and sustainability claims
• Incorporate anti-greenwashing practices into due diligence and fund management.
• Communicate ESG strategies transparently and effectively with clients and stakeholders

Introduction

• Background: Investment Managers ESG responsibilities including “Financed Emissions” and other environmental & social impacts
• Definitions & examples of greenwashing in finance
• History and recent high-profile cases
  • DWS
  • HSBC
  • Total Energies
  • Impact on trust and capital allocation

Greenwashing in Practice

• Assessment of ESG & Sustainability profile & performance of Investee entities
• Types of Greenwashing
  • Greenhushing
  • Greenshifting
  • Greencrowding
  • Greenlighting
  • Impact-washing
  • Transition-washing
  • How greenwashing occurs in fund marketing, reporting, and ratings
  • Role of ESG data providers
  • Challenges in ESG labelling and fund classification

Regulations & Standards Landscape

• Advertising Standards Authorities
• EU SFDR
• Taxonomy
• CSRD- SEC ESG disclosure proposals
• FCA anti-greenwashing rule
• UK Green Claims Code
• Fraud Law: UK Economic Crime and Corporate Transparency Act
• Implications for managers and product design

Due Diligence & Mitigation Strategies

• Red flags to watch for in ESG claims
• Integrating ESG integrity into investment analysis
• Communicating ESG strategies responsibly

Duncan Hughes has over 30 years experience in finance gained from senior positions held within investment banking as well as asset management and as a partner in a hedge fund.

He was responsible for overseeing the development of sustainable investment products at one of the largest global investment managers and, in recent years has lectured on ESG and sustainability in finance through leading international professional development firms for many of the world’s leading financial institutions.

In addition to his extensive experience in banking and financial markets, Duncan has been a Visiting Professor in Practice on postgraduate programmes at a number of London universities and seeks to combine academic rigour with real-life practical application in his courses.

A past winner of the Institute of Investment Management & Research’s Quantitative Methods & Statistics Institute prize, Duncan has been an examiner for the Chartered Financial Analyst (CFA) organisation and has taught CFA Candidate preparation programmes at all three levels. He also teaches on programmes preparing candidates for the CFA ESG and Climate Change examinations.

Investment Managers, Product Designers, Risk Managers, Legal Professionals, Compliance Managers

IA Member £395.00 +VAT
Non-Member 545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

• Any cancellation must be made in writing.
• For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable.
• No refund is given for a cancellation made 14 days or less prior to the commencement of a course.
• Transferring from one course to another is treated as a cancellation.
• You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.