Scrutinizing high ESG fees, greenwashing and the politicization of public pension funds

In Politics by Michael Rae

Environmental, social, and governance (ESG) assets are expected to top $50 trillion worldwide by 2025, according to Bloomberg Intelligence. The latest report from the Global Sustainable Investment Alliance put “sustainable” investments at 36% of professionally managed assets globally. However, despite this rapid growth, ESG-focused investing is drawing criticism, even from some supporters, due to overstated claims and high fees. In the public sector, ESG implementation is increasingly seen as a politicization of public dollars.

Greenwashing and Marketing

Both Goldman Sachs and Deutsche Bank’s DWS are currently facing U.S. Securities and Exchange Commission (SEC) probes over the alleged “greenwashing” of their investment funds,