The U.S. Securities and Exchange Commission (SEC) has implemented a new rule to address the issue of “greenwashing” in investment funds. The rule requires funds to ensure that 80% of their portfolio aligns with the assets advertised in the fund’s name. This crackdown comes after the SEC discovered funds that claimed to invest exclusively in environmentally friendly assets but actually had a wider range of investments. The move has been praised by activists and environmentalists who see it as a step towards greater transparency and protection for investors. Meanwhile, Europe is also clamping down on greenwashing, with a ban on misleading environmental claims set to come into effect in 2026.
https://www.semafor.com/article/09/21/2023/the-sec-cracks-down-on-greenwashing