September 12

Viewpoint: 4 Key Questions to Help Investors Avoid Greenwashing

By Masja Zandbergen

With the sharply rising interest in sustainable investing around the world, and the proliferation of sustainable funds, investors face a serious challenge. How do they determine a fund is truly managed according to responsible criteria vs. one whose sustainability principles are superficial, inconsistent or poorly construed — a situation known as “greenwashing?”

The Global Sustainable Investment Alliance estimates sustainable assets under management in key regions have grown 34% during the past two years, reaching $30.7 trillion in 2018. To capture this demand, investment managers have launched more than 100 sustainable funds in the U.S. alone during the past three years.

Despite — or perhaps because of — its growing popularity among institutional and retail investors, sustainable investing can be defined in many different ways.

Photo courtesy of GotCredit.

Source: Pensions&Investments (link opens in a new window)

Environment, Investing
environment, ESG investing, impact investing, sustainability, sustainable investing