Nearly 22 percent of professionally managed assets around the world can be considered sustainable or responsible, according to a finance industry assessment, the first comprehensive look at the subject.Critics question the rigor of such terms as "sustainable"; a more accurate total might be less than 22% considering the temptation towards greenwashing that still persists in many a hidebound industry.
“It is a huge problem that there are no set criteria used by industry today to define ‘sustainable’ practices or investments – on what basis are these claims being made and who has vetted any such criteria?” [said] Anuradha Mittal, the executive director of the Oakland Institute... “Investment is necessary, but only if investment criteria are first vetted by local communities, to incorporate labour, environmental and social concerns. Given that no such standards exist, and given that corporate accountability remains a major difficulty, this is extremely problematic. We need to see that investment is actually elevating communities and natural systems, because that’s what the world needs.”Whether 22% or a smaller figure, there is a better question than one of methodology or definition.
Why are 78% (or more) of all investments unsustainable, irresponsible, or both?
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