Decoding greenwashing in climate investing

At a recent press conference, Prime Minister Lee Hsien Loong remarked that climate change is the existential challenge of our time. This perspective is widely shared. Asian families increasingly tell us that they want to preserve wealth, and to do so in a way that ensures that future generations have a livable planet. As a result, many have turned to Environmental, Social and Governance (“ESG”) investing, in particular, climate-themed investments – or climate investing.

The proliferation of climate investing, however, presents the issue of greenwashing - the over-representation of an investment’s impact towards an environmental agenda. Unsurprisingly, this has now become a top-of-mind issue for families and wealth owners who demand that their capital drives real, positive impact and targets competitive financial returns. For managers of capital, the answer to decoding greenwashing can be found in an approach that combines corporate engagement, carbon pricing mechanisms and Just Transition principles.

Actions speak louder than words: active engagement with companies