Greenpeace slams 'sham' sustainable investment funds

(MENAFN- Swissinfo) Greenpeace Switzerland has called for better policing of the sustainable investment sector after finding that many funds in this category are failing to deliver on their promises.

This content was published on June 21, 2021 - 14:56 June 21, 2021 - 14:56

Keystone-SDA/mga

A study of 51 'sustainable' funds marketed in Luxembourg and Switzerland left 'much to be desired', said a report issued by the NGOExternal link on Monday.

The examination found that most funds lacked any real 'Environmental, Social and Corporate Governance' (ESG) impact. The few positive cases brought improvements to major environmental controversies or the cement and defence industries.

'Most of the so-called sustainable investments that are currently being offered are actually damaging the climate,' complains Greenpeace.

'Without clear guidelines on what constitutes sustainable investments, there is a great danger of greenwashing, misleading customers into thinking they are making sustainable investments when in fact their money does not end up having a positive impact on the environment and society.'

The sustainable finance industry is booming worldwide following the Paris climate agreement and the introduction of UN sustainable development goals.

More

In space exploration, Switzerland punches above its weight

A Nobel Prize for the country's astrophysicists is a reminder Swiss scientists are at the forefront of space research.

The Swiss government and financial sector has voiced ambitions for Switzerland to become a leading sustainable finance centre in future.

In a report released last weekExternal link , the association Swiss Sustainable Finance stated that sustainable investments in Switzerland increased by nearly a third last year to reach CHF1.5 trillion ($1.6 trillion).

But Greenpeace fears that many are failing to follow goals set out by the United Nations or the Paris climate agreement and that financial institutions are simply allowed to make up their criteria as they go along.

The NGO is calling for lawmakers and regulators to step in to force transparency, impose minimum standards and to stop financial players from cheating investors.

'In Switzerland no measures have yet been defined to regulate sustainable investment funds or to prevent greenwashing,' the report states.

Articles in this story

In space exploration, Switzerland punches above its weight

MENAFN22062021000210011054ID1102322846

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.