How to Ensure ESG Investing Isn’t Whitewash

AS PEOPLE’S INTEREST IN socially responsible investing grows, mutual fund and exchange-traded fundissuers are introducing more investment vehicles to allow people to align their dollars with their values.

Among the $46.6 trillion of U.S. professionally managed assets at the end of 2017, $12 trillion – roughly 26% – was earmarked for sustainable investing, according to data from US SIF.

With money pouring into environment, social and governance investing, commonly referred to as ESG, it’s easy to see why money managers want a slice of those assets. While there are a number of sustainable investment funds with long track records doing ESG investing, there are a number of upstarts which may or may not know how to use data properly.