Surprised to read this in Bloomberg:
With so much money flowing into securities deemed compatible with environmental, social and governance standards, the risk of asset managers disingenuously promoting their offerings as being ESG compliant is high and rising. Unfortunately, new European Union rules designed to delineate the industry’s performance will likely lead to more greenwashing, not less.
Last week, Tariq Fancy, the former chief investment officer for sustainable investing at BlackRock Inc., the world’s biggest asset manager overseeing $8.7 trillion, castigated the industry’s duplicity,in an article for USA Today:
“In truth, sustainable investing boils down to little more than marketing hype, PR spin and disingenuous promises from the investment community. Existing mutual funds are cynically rebranded as ‘green’ —with no discernible change to the fund itself or its underlying strategies —simply for the sake of appearances and marketing purposes.”
The numbers back him up. According to data compiled by…
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