CFA Institute publishes Exposure Draft of ESG Disclosure Standards
CFA Institute, the global association of investment professionals, announced recently, the publication of the Exposure Draft of its forthcoming voluntary, global Environmental, Social and Governance (ESG) Disclosure Standards for Investment Products (“the Standards”). The draft is an initial version of the Standards and seeks to elicit feedback on the Standards’ proposed principles, requirements, and recommendations.
“CFA Institute has a long history as an important global standard-setter. The creation of the ESG Disclosure Standards is another step we are taking toward a global common language for sustainability, as ESG moves into the mainstream of global finance and commerce,” said Nick Pollard, Managing Director, and Asia Pacific, at CFA Institute.
Dinesh Warusavitharana, President of CFA Society Sri Lanka, added: “Sustainability includes many different issues that are not easily compared. What sets the ESG Disclosure Standards apart from others is that they are suitable for all types of investment vehicles, all asset classes, all ESG strategies, and all markets. We believe the creation of the ESG Disclosure Standards will bring greater clarity and transparency when presenting, identifying, comparing, or discussing products with ESG-related features.”
The Exposure Draft considers an ESG-related feature to be any aspect of an investment product’s strategy that uses ESG information or addresses ESG issues. Investment managers can apply the Standards regardless of how their investment products are named, labelled, or categorized. Additionally, the Exposure Draft proposes that investment managers have the flexibility to apply the Standards on a product-by-product basis rather than to all products, or at the firm level.
The Exposure Draft was written with the help of a technical committee composed of 18 international volunteers who have ESG expertise, as well as experience as asset owners, asset managers, consultants or service providers. It incorporates the public comments received on the Consultation Paper that was released in August 2020. CFA Institute now seeks input from the wider investment community to help shape the final version of the ESG Disclosure Standards for Investment Products scheduled for release in November 2021.
CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion of ethical behavior in investment markets and a respected source of knowledge in the global financial community.
The Exposure Draft will be posted on the ESG Standards section of the CFA Institute website ( www.cfainstitute.org ) Comments on the Exposure Draft must be submitted to standards@cfainstitute.org by as per stipulated date. Any individual, group, or organization may submit comments using the response form on the website.
More information could be obtained from, pr@cfainstitute.org
