With awareness about the impact of human behaviour on the environment growing, the role a corporation plays in society and how it conducts its business have come under the scanner. Conscientious investors want to invest in companies that will help sustain the environment rather than harm it.
To this end, investors have been keen to allocate their money to funds that have shown a sense of responsibility in terms of the portfolio choices made by their investment managers. However, there have been issues with the way some investment funds operate, including in the ways their so-called Environment Social Governance (ESG) schemes are named and marketed to clients. One way in which this problematic behaviour manifests itself is “Greenwashing”.
