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Regulators target greenwashed products | Investment Executive

James Langton Sustainable investing, like any other hot retail investment trend, is vulnerable to hype. Regulators now are stepping up their efforts to ensure investors are getting what they’re promised from environmental, social and governance (ESG) investments. When ethical investing was a fringe activity, regulators didn’t have to worry too much about what was going into investment funds that promised green or socially conscious investments. The firms involved in the space were mostly true believers in the cause of responsible investing, and the assets at stake were relatively modest. However, as ESG investing goes mainstream, it’s become increasingly susceptible to marketing hype designed to drive sales rather than meet investor needs.

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