Securities and Exchange Commission Takes on Greenwashing

ESG, i.e., funds that consider environmental, social, and governance issues are growing in popularity.  The term is used interchangeably with “socially responsible investing (SRI)” and “sustainable investing.”

As anyone would have anticipated, greenwashing is a consequence of this demand; fund managers tend to claim their products meet ESG standards when in reality, they come nowhere close.

It’s good to know that the Biden appointee to the SEC has pledged oversight in this arena.  As mentioned in the article linked above, the previous administration had very little interest in this subject.  Imagine that.