Danger of being corrupted? ESG ratings increase risks of greenwashing

Easy to treat some standards with scepticism

clock • 4 min read
Alpay Soytürk of Spectrum Markets
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Alpay Soytürk of Spectrum Markets

In the 1970s, when men stopped their cars in front of a kiosk to buy a pack of unfiltered cigarettes, they would leave the motor running for as long as it took to grab the cigarettes, and maybe have a quick coffee and chat.

Needless to say, cars were not equipped with catalytic converters and high fuel consumption was more a sign of a high social status than a reason to feel ashamed.  Times have changed a bit since then. A few oil crises, environmental catastrophes, and better-educated generations later, green is the colour of hope and green labels such as 'sustainability' and 'social responsibility' have become brands in themselves. And this is where the problem lies.  As consumers, we have become accustomed to seeing firms abide by relevant laws, industry standards or voluntary commitments on environme...

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