The Financial Services Council (FSC), Australia’s financial services industry’s standards and policy setting body, announced the release of new climate-related guidelines for investment managers to set targets, report on risk, and avoid greenwashing. The primary purpose of the guidelines is to set common baseline expectations for the industry’s approach to net zero claims, disclosure of climate-focused investment features, and reporting on climate-related risk. The new rules come as investor interest in ESG and climate risk has undergone significant growth, driving a proliferation of investment products and services marketed as ‘green,’ ‘sustainable,’ or ‘net zero,’ but without clear rules communicating to investors the actual sustainability-related attributes, methodologies and criteria that are being considered in the funds. Key topics covered by the guidelines include setting net zero targets for investment portfolios, with a particular focus on assessing portfolio emissions, and reporting climate risk in line with the Taskforce on Climate Related Financial Disclosures (TCFD)..

Source: ESGToday