The difference between true ESG and greenwashing

Last reviewed March 7, 2022

Original upload March 7, 2022

Blog Summary

The rise of environmental, social and governance (ESG) data in investment research has led to more frequent greenwashing—the practice of overstating, or even inventing, sustainable initiatives and goals—by some companies and investment product providers. The trend is unfortunate, as the poor practices of some companies have led to questions about the legitimate efforts of many others. This is naturally discouraging for legitimate sustainable investment vehicles and the investors who seek them out. There are ways, though, to differentiate between true ESG investments and those hiding behind marketing hype.