How East Asia Is Dealing With Greenwashing

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With the surge in popularity of environmental, social and governance (ESG) investing, it has become more important than ever to ensure that related companies and projects are as 'green' as they purport to be.

Article originally published by Forbes. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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18 Jul 2023

With the surge in popularity of environmental, social and governance (ESG) investing, it has become more important than ever to ensure that related companies and projects are as “green” as they purport to be. PwC estimates that ESG-related assets under management (AuM) will reach US$33.9 trillion by 2026, from US$18.4 trillion in 2021. With a 12.9% annual growth rate, ESG assets are on track to make up 21.5% of global AuM by 2026.

With that in mind, throughout East Asia, governments are developing different approaches to combat the growing problem of “greenwashing” – the act of making false or misleading statements about the environmental benefits of a product or practice. Because consumers are often willing to pay more for eco-friendly products, greenwashing can be lucrative for the perpetrators.

The same principle holds true in