CHAPTER 7

How to Be a Great Greenwashing Detective

We’ve talked a lot about how funds identify sustainable companies and what they do with that analysis in the last few chapters. In a perfect world, these funds would then be perfectly transparent about their process and give you lots of information about what they do, why they do it, and how effective it is. But this is not a perfect world, and there is a very important challenge we need to acknowledge before we find your sustainable investing fit.

It’s called greenwashing.

Greenwashing happens when companies or funds promote themselves as sustainable without any real substance to back it up. Unfortunately, it’s pretty common among companies who want to hit on the hot trends while sweeping their ...

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