September 14

Regulators, Organizations Look To Fill ESG Standards Void

By Mark Burgess

As money pours into environmental, social and governance (ESG) funds, regulators and industry organizations are playing catch-up as they set disclosure rules and develop tools to inform investors about what they’re buying.

Global ESG assets hit US$1.06 trillion as of June 30. According to the CFA Institute’s most recent trust survey, almost seven in 10 retail investors are interested in ESG products.

However, investors don’t always know what’s in the funds they’re buying or what ESG criteria are being used. Some investors have been left wondering why their ESG funds contain oil companies or weapons manufacturers, and advocates have warned of “greenwashing,” or products marketed as sustainable but not meeting objective standards.

Photo courtesy of Bill Oxford.

Source: Investment Executive (link opens in a new window)

ESG, governance, greenwashing, impact investing