There is good reason to be concerned about greenwashing, where managers or companies exaggerate their green credentials: on average, two new ESG funds are being launched every day in 2021.
These are no small numbers and unsurprisingly greenwashing topped the worry list for investors when it comes to responsible investing, with 44% of them concerned that ESG investments are not what they claim to be, according to research by Quilter.
It begs the question as to whether at least a fraction of funds being launched are treating this less as a fundamental ‘green' re-set of their portfolios, and more as a marketing exercise, with greenwashing becoming a core and overlooked issue.
Listen in to our podcast with special guests Federated Hermes CEO Saker Nusseibeh and UK Sustainable Investment and Finance Association CEO James Alexander, who debate if greenwashing is a risk to the credibility of the sector in 2021 - and if the asset management industry can do anything about it.
You can watch the full video podcast here:
Or listen in to our audio version here, or on Spotify.
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