The Rise Of ESG
Early in June, when BaFin inspectors and police descended on the company's Frankfurt headquarters to look into charges of greenwashing, the largest money manager in Germany, DWS, was rocked by scandal. When promises about following environmental, social, and governance ( ESG Consulting) principles are inflated or outright fraudulent, this practice is known as "greenwashing." Given that the claims could apply to up to half of the $900 billion that DWS has under management, the DWS case may be an obvious example of prospectus fraud. The bank BNY Mellon has been punished here in the US. The Securities and Exchange Commission is reportedly looking into the venerable Goldman Sachs because of overstated ESG Strategy claims made in its fund management division, according to the Wall Street Journal. This whole thing shouldn't be shocking. ESG Reporting has recently become a buzzword that investment managers and C-level executives are shouting from the rooftops. Accord...