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When government enters, regulation follows.

by: Sabrina Clarke

· Sustainability

In October, a UK Parliament committee assembled to question witnesses and hear from experts about how ESG impacts investing and, very importantly, "to what extent companies may be using ESG disclosures to mislead or "greenwash" investors".

The fact that the committee identified greenwashing as a factor is a significant step, primarily since the term "ethical investment banking" is being referred to. It signals marketing campaigns aren't going to cut it; benchmarking will.

We can expect to see how companies will be held accountable as the need for reporting on ESG and sustainability metrics is a requirement that is accurate and transparent.

When government enters, regulation follows; there will undoubtedly be more as ESG and Sustainability evolve.