Fund managers that invest in or lend to ESG portfolio companies find themselves in a double bind. On the one hand, they are invariably subject to the accusation of “greenwashing”. On the other hand, the resources for tracking and transparency that are required to reduce the bite of such accusations, or to respond to them effectively if made, are expensive and distracting.
EVs and the bumps on the road to climate credibility
Greenwashing accusations carry reputational risks and have drawn regulatory attention: fending them off entails costs.
