Wealth managers remain extremely cautious about claims made by ESG funds for fear they will get caught up in greenwashing scandals, a survey has found.
The percentage of investment advisers who say they "completely trust" sustainability claims from funds has fallen from 1% to zero, according to the ESG Attitudes Tracker from the Association of Investment Companies. On a scale of one to five, most respondents (51%) rated their level of trust as ‘three', indicating limited trust. Advisers told the researchers that recommending funds based on misleading claims puts their business at risk. One adviser said: "I am concerned about [greenwashing] because to recommend something on the basis that it meets my client's desires for investment an...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
