Ethical Investment Tide Lifts ‘Greenwash’ Concerns
SYDNEY (Reuters) – Investors are plowing ever more into ethical funds to back their views on issues such as global warming and gender equality, but such investments can be confusingly similar to standard funds, except for higher fees and ‘green halo’ marketing.
The $23 trillion “sustainable, responsible and impact” (SRI)investment sector has received a rush of money since the Paris climate agreement and, more recently, in protest against U.S. President Donald Trump’s plans to slash environmental regulations.
Europe is the dominant region for such investments, with $12.04 trillion, followed by the United States, with $8.72 trillion, while Asia lags some way behind. U.S. investors have poured $1.8 billion into actively managed U.S. equity funds in the socially responsible category from November to January, according to Lipper data, while other funds saw a net outflow of $133 billion.