FT News Briefing A looming ESG crackdown
Aug 15, 2023
Markets in Argentina are reeling after shocking election results, creating turbulence for investors. Foxconn’s pivot to India highlights the complexities of diversifying from China. Meanwhile, U.S. regulators are tightening their grip on ESG investing, focusing on transparency and the risks of greenwashing. The SEC is ramping up scrutiny to ensure asset managers stay true to their sustainability commitments. Additionally, UBS's hefty settlement over mortgage bond mis-selling adds another layer to the ongoing financial landscape.
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Argentina's Market Turmoil
- Argentina's markets reacted negatively to Javier Milei's primary win.
- Milei's proposals include drastic spending cuts and pegging the peso to the dollar.
SEC Investigates ESG Investing
- The SEC is investigating asset managers' ESG investing practices.
- They're focusing on transparency and follow-through in ESG rankings, screenings, voting, and disclosures.
ESG and Asset Manager Fees
- ESG investing has become popular because it allows asset managers to justify higher fees.
- Managers rank and screen companies based on ESG metrics, potentially charging more without full transparency.