Claims of greenwashing, whether they are pitched against fund managers, companies or risk rating agencies, have followed the rise of ESG investing. So are their solutions to this problem and how can they be combatted?
Greenwashing is defined as disinformation that is disseminated knowingly, or unknowingly, by an organisation to present themselves as being environmentally responsible. But it has more recently also become used in a broader sense to encompass wider ESG claims in the industry. It is fair to say greenwashing risks have risen significantly as this part of the industry expands so rapidly and there are many potential pitfalls for investors, who with good intentions inadvertently buy into the pseudo-green marketing practices of funds and businesses. The industry shift towards sustainab...
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