Investors and financial advisers are increasingly voicing apprehension in regards to the mis-labelling of ESG investment products.
Following the introduction of a consultation by the Financial Conduct Authority on ‘greenwashing’ and sustainable disclosure of funds, Boring Money’s research shows that consumers and advisers share the same concerns as the regulator.
In a survey of 4,654 adults in the UK in July 2022, the independent financial education business found that 25% of investors and 24% of savers who would consider investing are worried about greenwashing when opting for sustainable products.
The number is even higher among financial adviser, as 75% share the same concerns, with many worried about the risk to their reputation if a fund they recommend is accused of greenwashing.
Despite these attitudes, interest in ESG and sustainable investments remains high.
Boring Money found that, as of October 2022, 22% of fund investors reported owning a sustainable fund and 18% were considering buying one in the next six months.