· 1 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Guardian or enjoy below:
🗞️ Driving the news: EU-regulated "sustainable" funds, promoting ethical investments, have allocated £14bn to the top 200 polluters, including fast fashion brands and fossil fuel companies
• An analysis revealed that $18bn of these investments go to major carbon emitters, despite their eco-friendly marketing
🔭 The context: More than $87bn is held in funds disclosing under EU sustainable finance rules, with a fifth marketed as environmentally friendly
• Campaigners argue that current labels mislead investors, prompting calls for stricter regulations
🌍 Why it matters for the planet: Mislabeling funds as sustainable allows significant investments in high-emission sectors, undermining climate goals and confusing consumers who seek genuinely green investments
⏭️ What's next: The European Securities and Markets Authority (ESMA) and banking watchdogs advocate for clearer, stricter categories to prevent greenwashing and better inform investors
• New guidelines will soon restrict marketing funds with substantial fossil fuel investments as green
💬 One quote: "Pension savers and the general public are being misled when it comes to sustainable finance," said Lara Cuvelier, a sustainable investment campaigner at Reclaim Finance
📈 One stat: About one-fifth of the $87bn in sustainable funds come from investments marketed with eco-friendly terms
Click for more news covering the latest on greenwashing
