“Things have to be verified in a standardized format. Right now, it’s creating distrust between companies and owners,” says Andrew Behar, CEO of As You Sow, the shareholder advocacy nonprofit.
Meanwhile, fund names should accurately reflect their ESG practices. “There is no connection between a prospectus and its holdings,” Behar says. In January, As You Sow published a study of 94 mutual funds and ETFs with the word ESG in their name. Based on the firm’s criteria of what makes a good ESG fund, 60 received a D or an F grade. Read More →