Why Doubts About ESG Aren’t Slowing Funds’ Spread: M.S. Webb

If you buy a fund with sustainable, ethical or green in its name, are you really getting something different from everyone else? Or are you all too often getting much the same thing, just with a more compelling name? Is there an epidemic of greenwashing? The UK’s Financial Conduct Authority has long suspected the latter – hence the introduction of new regulations that will come into force early next year around the labeling of funds.

The FCA was, as it turns out, quite right to be suspicious. A new paper from London Business School Professor of Finance Alex Edmans ans Executive Fellow of ...