When it comes to sustainable investing, it’s critical to consider investing standards, including how to measure the impact of your investments. A number of organizations have developed metrics for measuring the impact of investments. While these metrics can vary, they all aim to evaluate investments using the same criteria. These metrics started as a way to avoid investing in companies that may pose a risk, but have now evolved into a comprehensive assessment of positive performance. If you are interested in making a sustainable investment, consider following the guidelines outlined by the Global Impact Investing Network.
The Sustainable Fund Disclosure Rule was designed to reduce the risk of greenwashing and ensure that investors can easily compare the sustainability of different funds and companies. The new regulation requires investment managers to disclose the factors that affect the impact of their funds and companies on the environment and society. By requiring more information, investors will gain more clarity when deciding which investments to invest in.
Investing standards are important to protect your investment and give you the peace of mind that you’re making a smart decision. The Financial Conduct Authority is weighing the proposal for a new sustainability classification and labelling system. The US Securities and Exchange Commission has also proposed regulations for companies to disclose information about their ESG policies. And the International Financial Reporting Standards Foundation is working to create global standards for ESG.