Corporate ‘greenwashing’ poses growing threat to ESG goals: report

Read the full story at CFO Dive.

Sustainability-related financing has tripled since 2015, with a tenfold increase in flows to environmental, social and governance (ESG) funds, an eight-fold increase in sustainable debt issuance and a doubling in the value of ESG-related deals by private equity and venture capital firms, according to a report by Generation Investment Management.

Yet “failure to tackle greenwash poses a serious risk to the sustainable transition,” Generation said, noting “growing unease at the low quality of some net zero commitments, the gap between goals and actions and the absence of guardrails for those utilizing natural solutions, including as offsets.”

“The time for celebrating vague, distant goals on net zero or ‘nature positive’ has long passed,” Generation said, adding “investors need clarity over how companies will turn goals to actions in the next few years.”

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