New Greenwashing Report: Regulator needs to wake up and act!

New research by SCM Direct into UK Ethical/ESG/SRI funds found that, beyond the glossy marketing and ‘green badge’, there is blatant greenwashing occurring across the UK investment industry. Looking under the bonnet, SCM Direct found there was little to no difference compared to traditional non-ethical funds. Other funds were holding stocks few reasonable investors would classify as ‘ethical’, whilst others simply mentioned ethical aims in their fund literature.

With more and more pressure being placed on investors, pension savers, advisers and trustees to invest in in these ‘green funds’, SCM Direct’s view is that there must be urgent action against what they believe is a mis-selling scandal.

Based on our research findings, SCM Direct strongly believes the evidence must spur the FCA to take action and makes pragmatic recommendations in this report that would greater ensure all communications are ‘clear, fair and not misleading’, and that consumers are significantly better protected.

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