Aiming to Protect Portfolios Against Greenwashing and How Data Can Help

Greenwashing – where an organisation or products are portrayed as more sustainable than they really are - is a big concern for investors. Alongside this comes ‘social washing’, regarding how organisations treat their employees, including labour policies, human rights, gender equality and more. With allegations of corporate greenwashing continuing to make headlines, it’s understandable that investors are asking questions about what an investment strategy’s ‘green’ label really means. Transparency is vital if investors are to overcome the challenges they face with respect to greenwashing. A plethora of new regulations and guidelines, such as the EU Taxonomy classification system and the Sustainable Finance Disclosure Regulation, are helping to ensure greater consistency and a standardised approach to important aspects of responsible investing. As corporate sustainability disclosures become more common and more detailed, the ability of analysts and asset managers to score environmental, social and governance (ESG) performance should improve and help mitigate against the risks of greenwashing and allowing investors to make more informed decisions. . In Episode 3 of AXA IM’s original series "Investors’ ESG Guidebook: The Road to Equitable and Sustainable Growth" hear from leaders in the responsible investing space about how they are shaping their investment objectives in line with increasing corporate sustainability disclosures. Find out about some potential strategies to aim to protect your portfolio against the pitfalls of greenwashing. Topics for discussion include: - Asset allocation strategies for responsible investing - What to look for when analysing how green an investment truly is - How ESG analysis and engagement can help protect against the risks of greenwashing - The future of responsible investing: How increased corporate sustainability disclosures are levelling the playing field and driving opportunities for responsible finance