In June, the European Union published new guidelines on how companies report climate-related information. As part of these ESG guidelines, two climate benchmarks were introduced: the EU climate transition benchmark and EU Paris-aligned benchmark.
The new EU benchmarks are designed to disincentivise greenwashing by bringing greater clarity on how specifically companies focus on the climate and sustainability rather than just pay it lip service.
In this video, Joshua Kendall, senior ESG analyst at Insight Investment, discusses the significance of new EU climate benchmarks for the fund industry and what risks or downsides the benchmarks might represent for investors.
