The sustainable investing landscape is maturing, with stricter regulations and a greater focus on transparency to combat misleading claims.

• Stricter Regulations: Regulatory efforts, such as the revision of the SRI label (scheduled for 2025 in some regions) and new disclosure directives (like the EU’s Corporate Sustainability Reporting Directive – CSRD), are forcing greater selectivity and exclusion of companies with poor environmental practices.
• Greenwashing Examples: Recent headlines have spotlighted instances of greenwashing, where companies make deceptive environmental claims. Examples include misleading recycling claims on coffee pods and issues around the true “ocean-bound” nature of plastics used in certain products.
• Investor Demand for Transparency: To guard against greenwashing, investors are prioritizing the ethical use of technology, with companies developing AI tools to enhance transparency and fairness in ESG (Environmental, Social, and Governance) data analysis. Investors are increasingly leveraging corporate transition plans and frameworks to ensure their capital is driving genuine economic change, not just “paperwork.”