Like other big and complex industries, the world of Wall Street has always had an inclination for acronyms, which are meant to simplify the sometimes complex terminology of “responsible investment.” In theory, one of the most recently adopted acronyms — ESG, which stands for environmental, social, and governance — should be the easiest to understand and… Read More >>
FCA Targets False ESG Labels
Picture it, teatime at London’s Financial Adventurers Club. “I say, chaps,” says one disreputable fellow, “did you see what the Yanks have come up with? ‘Green investing’! ‘Sustainable’! Must be some way to pocket a few shillings peddling that to the punters.” That’s greenwashing, and you can add it to your list of financial scams…. Read More >>
Not All ESG Funds Are Climate-Friendly: Report
Some environmental, social, and governance (ESG) funds and funds with “climate” in the name contain assets that are inconsistent with their environmentally conscious branding, according to a recent study by ESG Book. The report, “Always check the label,” examined asset data on 420 ESG funds and 95 climate-labeled funds, all of which had at least… Read More >>
Get Ready for a Major Battle Over ESG
Call it a fight over conflicting ideological screening methods or a backlash against a backlash. But, regardless of the initial label, a major political battle over environmental, social, and governance (ESG) principles is gathering steam. As conservative U.S. states fall in line against the usage of ESG principles for public pension investments, 13 state treasurers… Read More >>
Greenwashing Crackdowns Should Spur ESG Funds Review: Q&A
(For financial services firms, the term “greenwashing” refers to misleading marketing about investments based upon Environmental, Social and Governance (ESG) and sustainability concerns. The practice has been getting a lot of attention recently as major media have reported upon a raid by German authorities of Deutsche Bank’s DWS offices in an effort to gather evidence… Read More >>
CalSTRS to Apply Proxy-Voting Powers to ESG Goals
CalSTRS, the influential California State Teachers’ Retirement System that tallies $318.1 billion in assets under management (as of February 28, 2022), is putting its money where its values are. The public pension fund has declared that it will be using its proxy voting power to make sure that the companies it invests in actually live… Read More >>
