ESG Investing  

ESG label fails to win 20 per cent of investors

Janine Alexander, partner in the commercial disputes team at Collyer Bristow, said: “There is growing interest and demand from investors for ESG to play a greater role in investment decisions, as this research demonstrates.

"We [also] know that regulators are starting to pay increasing attention to and where there is potential for disputes and issues to arise, particularly around greenwashing."

She added: "The potential for disputes to arise will depend on the investors’ expectations and whether there is a disparity between how the company is selling itself to investors and what it is actually doing.

"Given the current level of appetite for ESG and impact investing, we see this as an area ripe for disputes and issues over the next few years in the UK.”

A spokesperson from the FCA told FTAdviser: “The FCA is acting to address greenwashing, protect consumers and support the transition to a more sustainable economy.

"In July we set clear expectations for funds which are marketed as sustainable. We are currently doing work on sustainable investment labels and disclosures, to ensure that firms are not overselling themselves and consumers can find the products that best meet their sustainability demands.”

calum.kapoor@ft.com