Dubious green funds are rampant in America

It is not easy being green. In November Amundi, Europe’s largest investment manager, downgraded most of its €45bn ($47bn) of funds ranked Article 9, the highest grade in the EU’s sustainability disclosures, to Article 8, or “light green”. New regulations are forcing many others to recast their wares in less virtuous colours. Nearly one-tenth of all Article 9 funds have left the category since the European Commission tightened its criteria, in July.

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That has exposed European fund managers to accusations of greenwashing, and for some the label is deserved. But new research published this week in the Review of Finance, an academic journal, suggests American firms are doing worse. When it comes to sustainable investing, Wall Street stalwarts appear to run a fully fledged laundromat of exaggerated sales…

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This article was written by and originally published on www.economist.com