The ABC of ESG

There is a lack of well-informed and joined-up thinking when it comes to the urgent activity of environmentally sustainable investing, says an ethical specialist in the area. Chris Hamblin spoke with Julia Dreblow.

The number of firms that sell or market investment products that purport to have environmental, social and governance-related (ESG) characteristics is sky-rocketing. Many make overblown claims about their 'green' nature - which in itself is a type of mis-selling known as greenwashing - and financial regulators such as the United Kingdom's Financial Conduct Authority are starting to make pronouncements about the shape that product advertising should take. Meanwhile, compliance officers at financial firms - who are about to weather a deluge of regulations on the subject in the next few years - still lack the right mindset for this unique subject.