Céleste Vildé

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Céleste Vilde is an International Economics and Management student at Bocconi University. A three-month internship in a private investment fund based in London spurred her interest in sustainability. Besides writing about the implications of ESG in Private Equity, she also writes about behavioural environmental economics and the benefits of blockchain technology for ESG reporting.

Giacomo Nicoli

Mar 03 2022

How Greenwashing practices can put at risk the effort of ESG related investments

Illuminem Voices

Environmental Sustainability · ESG

As ESG-related investments strongly increase their importance, so do ESG evaluation metrics that can prevent greenwashing practices. This article provides an overview of the main ESG Evaluation metric provided by S&P Global Ratings, later describing why such evaluation method should be taken into consideration in Private Equity funds and their investment strategies. It will then evaluate whether ESG really makes a positive difference on society by diving deep into an excursus on greenwashing, so to better understand the phenomenon and to explain how a lack of measurement can affect investment performance. Both topics of ESG and greenwashing are becoming increasingly relevant nowadays as they are closely linked to wider country-level sustainability goals and investment returns targets for Private Equity firms.