Scientific Beta

ETF Stream: "Despite their relatively successful starts, however, index provider Scientific Beta along with a number of investors have been quick to point to the “significant flaws” in these strategies and even warned about the potential for greenwashing. Where Scientific Beta takes issue, in particular, is around the index construction methodology, the EU TEG’s choice of decarbonisation metrics and “primitive approach” to sectoral issues. In a report, entitled A Critical Appraisal of Recent EU Regulatory Developments Pertaining to Climate Indices and Sustainability Disclosures for Passive Investment, the index provider said these factors were facilitating greenwashing."

ETF Stream 01/02/2021

"(...) ETF issuers flooded the market with climate change ETFs last year following the release of the European Union’s climate benchmarks in November 2019, however, there are some corners of the industry warning about the potential risks of these strategies and the greenwashing they are encouraging. (...) Despite their relatively successful starts, however, index provider Scientific Beta along with a number of investors have been quick to point to the “significant flaws” in these strategies and even warned about the potential for greenwashing. Where Scientific Beta takes issue, in particular, is around the index construction methodology, the EU TEG’s choice of decarbonisation metrics and “primitive approach” to sectoral issues. In a report, entitled A Critical Appraisal of Recent EU Regulatory Developments Pertaining to Climate Indices and Sustainability Disclosures for Passive Investment, the index provider said these factors were facilitating greenwashing. Furthermore, Scientific Beta stressed the lack of publicly available data used in the benchmarks created “an uneven playing field” that was harming competition in the index provider space. (...)"