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ESG mis-selling warnings are ‘flashing red’, experts say

Money is pouring in to green funds, but questions are being raised over whether investors really know what they’re getting

A flood of money into sustainable investment funds needs scrutiny, some say
A flood of money into sustainable investment funds needs scrutiny, some say Photo: Andrey Rudakov/Bloomberg

Sustainable investment funds have attracted tens of billions of dollars since the Covid pandemic struck, but some are worried that the flood of new cash could be a sign of a brewing mis-selling scandal.

“We are very concerned about the influx of money going into funds branded as ESG,” said Mick McAteer, founder and co-director of think-tank the Financial Inclusions Centre.

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