Gustavo Bernal Torres
The One Way to Avoid Greenwashing in ESG Investing
As criticism of the efficacy of ESG investing mounts over its acute susceptibility to greenwashing, one category has remained largely immune to calls for stricter regulation: clean-energy funds.
While the sector tied to wind and solar is perceived as reasonably safe when it comes to actually making a difference with your money, the bad news is that it’s been getting mostly pounded since early 2021.
The bottom line is that renewable energy companies have lost about 25% of their value since the start of last year. The industry has been vulnerable to rising interest rates and a business environment plagued by shortages of commodities required to make solar panels. Biden’s orders may be the start of a turnaround in quarters to come, but what should investors do right now?
Source: https://www.bnnbloomberg.ca/the-one-way-to-avoid-greenwashing-in-esg-investing-1.1775945