Position Green

The ESG Regulation Transformation

The rise of ESG regulations, particularly in Europe, is changing how companies do business. According to Joachim, it is a combination of regulatory compliance as well as evolving business models. “This is what especially the EU taxonomy is trying to do… change our economies in a way that they are basically producing goods and services that are in line with the Paris Agreement and take us to a net zero objective.”

A Balancing Act

Regulators must strike the right balance between too much and too little regulation, said Joachim. Companies and investors are increasingly concerned about greenwashing and greenhushing. “I think regulators are struggling with it. They are, to a certain degree listening, but at the same time, we are very early in this space of having iterations and basically feedback from the market players on whether this works or not.”

The Human Touch

Software is evolving alongside the ESG regulatory frameworks, but Joachim does not see tech-enabled solutions going away in favour of pure software plays. “The whole rationale for creating Position Green was to take the best software out there and the best advisors. Put that together, we believe that is going to be the superior solution for the customer. Because it still requires qualitative and an expert understanding to help guide the customer, whether it is corporate or an investor.”