Loophole in the Ozone Layer: the Varying Shades of 'Green' Mutual Funds

Labeling money market vehicles ‘fossil-free’ without living up to the promise is a problem for brands concerned about greenwashing

Inspiration meets innovation at Brandweek, the ultimate marketing experience. Join industry luminaries, rising talent and strategic experts in Phoenix, Arizona this September 23–26 to assess challenges, develop solutions and create new pathways for growth. Register early to save.

Environmentally conscious investors seeking to “do well by doing good” are shifting their money to funds that promise “fossil-free investing.” But their good intentions are often thwarted by mischaracterizations in prospectuses and marketing materials.

Although claims of fossil-free investment funds are perfectly legal, advocates like nonprofit social investing watchdog As You Sow are pressing the Securities and Exchange Commission to clamp down on “wiggle words” in funds’ prospectuses because they do allow a certain amount of suspected polluters into the mix.

The

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Spring Special

Save 30% Off an ADWEEK Subscription Today!

View Your Options

Already a member? Sign in