Financial regulators in Germany and the US have found that some companies that are part of sustainable investment funds (ESG) are not fulfilling what is offered to their clients. According to a non-profit organization based in London, more than 50% of these types of groups are not fully meeting some of the sustainable goals agreed in the Paris agreement years ago. Advertisements such as “low carbon”, “free from fossil fuels” or “green energy” have been used wrongly allowing “greenwashing”, an unsustainable practice that lead us away from sustainability models such as biomimicry.
Environmental impact and ESG (Environmental, Social and Governance) funds have grown brutally in recent years, as have capital flows to them from investors who want sustainable solutions. Organizations such as the SEC in the United States have formed teams to promote the disclosure of relevant environmental and social information about the companies that make up these financial groupings.