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Sustainability Matters

What Is Greenwashing, and Answers to Your Other Questions

Sometimes it’s an exaggeration of ESG intentions, but greenwashing can also stem from different definitions of sustainability.

Jon Hale, Ph.D., CFA, Hortense Bioy, CFA

Oct 21, 2021

Mentioned: Tesla Inc (TSLA)

The rapid growth of sustainable investing has led to concerns about greenwashing. Given the increase in the number of sustainable funds and the range of approaches they employ, investors are asking whether fund managers are making misleading or unsubstantiated claims about the sustainability characteristics and benefits of their investment products. Investors may feel disappointed or even cheated to find that the sustainable funds they have selected are not delivering the benefits the funds seemed to promise.

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Jon Hale does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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