Defining Greenwashing

• Ariadna Dumitrescu ^[3] ; Javier Gil-Bazo ^[1] ; Feng Zhou ^[2]
  1. [1] Universitat Pompeu Fabra

     Universitat Pompeu Fabra

     Barcelona, España

     
  2. [2] Toulouse Business School

     Toulouse Business School

     Arrondissement de Toulouse, Francia

     
  3. [3] ESADE Business School

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• Localización: Documentos de trabajo ( CNMV ), ISSN 2172-6337, Nº. 84, 2024, págs. 1-60
• Idioma: inglés
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• Resumen

  • We propose a definition of greenwashing in asset management that combines ESG self-labels, ESG ratings, and funds’ voting support for ESG proposals. Using this definition, we estimate that 29% of ESG funds in the US engaged in greenwashing during the 2016-2022 period. This proportion has decreased in more recent periods. Greenwashers are more likely to underperform, tend to belong to larger and younger fund families, and are less likely to be offered by signatories of the United Nations Principles for Responsible Investment. Investors, especially within the institutional segment of the market, appear to be able to discern true-ESG funds.