August 16, 2022

In recent years, demand for responsible investment funds has soared. However, misleading claims can make it difficult for consumers to make an informed choice when it comes to finding a home for their money

Whether you’re a citizen, consumer or investor, the ability to call out greenwashing is fast becoming a key life skill. Misleading or unsubstantiated claims about climate credentials can make it harder for people to make informed decisions. They can also undermine genuine efforts by companies to clean up their act and tackle the climate crisis.

The basic problem is a lack of clarity. Indeed, when it comes to spotting greenwashing, it can actually be more helpful to focus on the colour grey – because it’s the many grey areas that have helped make greenwashing so endemic. These grey areas might be around measurements, definitions, best practice, standards or regulations. Even the language we use is very imprecise, leaving lots of room for vagueness, obfuscation or outright deception. For instance, what do words such as “green”, “sustainable” and “eco” even mean?

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