Viewpoint: 4 Key Questions to Help Investors Avoid Greenwashing
Thursday, September 12, 2019
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.
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