The “regulatory expert” perspective on greenwashing (New Private Markets)

FrontLine’s Founder and President Amy Lynch was asked to provide her regulatory expert take on identifying greenwashing, when sustainability claims made by money managers are questionable or unsubstantiated. Ms. Lynch comments that a tell-tale sign of greenwashing is when a firm is non-committal and hedges about its ability to deliver on ESG. She explains that phrases such as “we have intended” or “our goal was” allow managers to have an out from meeting ESG objectives for investors. Ms. Lynch also states that when data for investors shows signs of inconsistency or is not a believable claim, such as a large reduction in carbon emissions over a short period, it should be considered a red flag. See New Private Markets (free view through sign-in), “How to catch a greenwasher”