Apr 24, 2023 10:19:34 AM
Transforming ESG from buzzword to impact
With the increasing prominence of ESG and green labels as marketing tools to attract new funds, it became evident that action was necessary to ensure that investments truly made a positive impact on society and the planet, rather than merely serving as a token gesture.
Although difficult to quantify the extent to which greenwashing is now embedded in ESG investing, a Schroders study of 750 industry professionals alarmingly found 59% identified greenwashing as a concern when selecting sustainable investments.
With ESG focused assets set to hit $50trn by 2025, accounting for one-third of traded assets, it’s imperative that regulators establish a well-defined and regulated code of conduct governing both ESG investments and their promotion.