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.
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