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.
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.