Diane picchiottino Hk Rl0t6 QUEA unsplash

How to avoid greenwashing - with the Fintech Times

Faye Turner

7 min Read Time | August 2nd 2022

Diane picchiottino Hk Rl0t6 QUEA unsplash

With pressure mounting on the financial industry to deliver on their promises of more 'ethical' practices and investments, how will they overcome greenwashing?

Impaakt CEO and Co-founder Bertrand Gacon spoke to the team at The Fintech Times and provided his insight as part of their ethical banking series that explores all manner of topics on the minds of most investors.

How can they ensure the act and invest ethically? This article tackles concerns such as data and transparency, regulations, reporting standards and more.

We think you'll find Bertrand's insight interesting, you'll also hear from many other industry experts who had views on ways that investors can avoid the problem of greenwashing.

Impaakt - Insight on how to avoid greenwashing


"Bertrand Gacon, CEO and co-founder of Swiss fintech Impaakt, has been at the heart of the discourse surrounding ESG standards for many years; specifically how the financial industry plays a central role in advancing sustainable development goals (SDGs).

He warns that because sustainable and ethical finance are such broad concepts, it makes them highly susceptible to greenwashing.

“The array of terminology and lack of precise definitions is also unhelpful,” he says. “For example, what does it mean if an investment fund has ‘responsible’ in its name? Will it exclude fossil fuel companies, or invest in ‘responsible’ ones? Is it focusing on companies that are responsible towards their shareholders or responsible towards the planet?”

So what can be done?

Gacon suggests that while regulators are attempting to address these difficulties, in the near term, investors should focus on the integrity of the data being utilised.

“ESG asks the wrong questions, it asks what risks the environment, social and governance factors pose to the company. At the core of if, that question needs to be reversed and we need to focus primarily on the net impact of a company on the world.

“Focusing on impact means that promises and practices are cast aside. One method to avoid greenwashing is to run your portfolio through the portfolio diagnostic tool on the Impaakt platform, this will give your portfolio an impact score, one that considers the net impact of the companies in the portfolio.”


Read the article in full, originally produced on the Fintech Times website here.

Related
Articles

Based on the article you've just read, here are some more we think you'd be interested in.

Vadim bogulov Mf Bnq U Oz q Y unsplash

11 Min read

Double-materiality is only useful when it is not associated with revenues

Impaakt co-founder Bertrand Gacon gives his insight on materiality to Global Banking & Finance Magazine.

Ryoji iwata X53e51 Wfjl E unsplash 1

12 Min read

The role of impact in the SFDR and ESG data overload

Impaakt co-founder Bertrand Gacon gives his insight on the matter to Global Banking & Finance Magazine.

Best ESG Fintech Company Europe 2022 Blue

8 Min read

Impaakt named 'Best ESG Fintech Company Europe 2022'

Global Banking and Finance Magazine award Impaakt with the title of 'Best ESG Fintech Company 2022'

Grey Impaakt Icon

10 Min read

ESG is out – Impact is in. Innovative start-up ‘Impaakt’ turns heads with award wins and new clients.

Awards wins & what our clients have to say about us. Read our latest press release.

Invest In Our Planet Logo Blue Background

12 Min read

"Invest in our Planet." What does this year's Earth Day theme mean?

We explore what the "Invest in our Planet" theme for Earth Day really means for us and the world.

Impaakt Wealth and Finance Award Winners

9 Min read

Impaakt wins Ethical Finance Innovator Award

Industry recognised "Wealth & Finance Magazine" awards Impaakt with 'Innovator of the Year' in their annual Ethical Finance Awards.

World Green Background Sustainability small

Let’s take action together

With the right investment companies having a positive impact on the planet are able to flourish. Our community forms part of that mission by measuring their impact.

Join Us