Finance
ESG Study Shared With SEC Reveals Fund Labels Are Often Useless
- Inconsistent standards fueling an ESG ‘Wild West,’ Behar says
- Behar seeks a common glossary to press for ‘truth in labeling’
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Investing in ESG funds is like trying to navigate “the Wild West” as both regulations and enforcement fall short, according to Andrew Behar, the chief executive of As You Sow.
The shareholder advocacy group spearheaded a study that found 60 of 94 ESG funds failed to adhere closely to the principles of environmental, social and governance investing. The findings, which have been shared with the U.S. Securities and Exchange Commission, indicate that “one can’t tell the difference between a prospectus for true ESG offerings vs. greenwashing mutual funds and ETFs,” the nonprofit said Tuesday.