It’s good more funds are looking to become environmentally friendly, but this could lead to greenwashing
There have been a large number of funds rebranding recently to include the phrase sustainable or ESG in their name, which raises suspicions about the potential for greenwashing – not the kind of recycling that climate crisis campaigners had in mind.
Greenwashing is used to describe the way funds may claim “green’” credentials to improve their environmental, social and governance appeal to investors.
By adding the phrase ESG to an existing funds it’s a bit like a company creating a huge advertising campaign about installing solar panels on all its warehouses, meanwhile generating millions of tons of plastic waste each year.
You still must look beyond the marketing spin to get a clearer picture.
With all these funds rebranding it is difficult to keep up with what fund strategies are trying to achieve, how the investment strategy has been altered as well as identifying the changes which have been made in line with adding an ESG or sustainable tag to the fund.
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