Environmental, social and governance (ESG) funds and products have become increasingly prevalent as ESG issues remain in the spotlight and demand for ESG investments continues to snowball. The lack of standardized terms, definitions and disclosure requirements, however, makes it more challenging for investors to understand exactly how “green” potential investments may be and to compare different ESG products with one another. CFA Institute has developed a set of ESG disclosure standards (ESG Disclosure Standards) that it hopes will meet the need for a widely accepted global framework and potentially become as successful as its Global Investment Performance Standards. Confluence and ACA Group recently hosted a webinar to discuss the new ESG Disclosure Standards; how they are different from other regulations and frameworks; and their potential relevance to asset managers. The program was hosted by Chris Smith‑Hill, product manager for product design and reporting at Confluence, and featured Crista DesRochers, partner at ACA Group (ACA); Camilla Bossi, business development manager at Confluence; and Carl Bacon, chief adviser at Confluence. Bacon is also the chair of CFA Institute’s Global Industry Standards Committee. This article reviews the key insights and relevant takeaways from the discussion. For coverage of previous ACA programs, see our two-part series on the sponsor-led secondary market: “Themes, Issues and Solutions
” (Oct. 8, 2019); and “Keys to Success, Process and Compliance
” (Oct. 15, 2019).