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Prince Harry and Meghan are joining the hottest investment trend in recent years-ESG-a form of investment that promises positive returns for people and the planet, but they are facing increasing accusations of “greenwashing”.
Prince Harry and Meghan, the Duke and Duchess of Sussex have portrayed themselves as cordial and compassionate members of the royal family, who use their fame to bring positive changes to mankind and the planet.
Oh-maybe you can make money while doing good deeds.
Therefore, perhaps the power couple will eventually inevitably expand their brand to the hottest investment trend in recent years-ESG-and establish corporate partnerships with companies such as Netflix, Spotify, and Apple TV+.
ESG stands for Environment, Society, and Governance, and describes an investment method that takes all these standards into consideration. Think of investment products such as “green” bonds or funds that promise to invest only in companies that promote gender equality or reduce greenhouse gas emissions.
Essentially, ESG promises to invest your money in your values, or at least in a way that will not harm people or the planet.
On Tuesday, Harry and Meghan announced that they would join Ethic, a fintech company that provides asset management technology for sustainable investment, as an “influence partner.”
Harry and Meghan wrote on their website Archwell: “We believe that when making decisions that affect everyone, it’s time for more people to sit at the table.” “We want to rethink the nature of investment to Help solve the global problems we all face.”
According to its website, Ethic has “transformed” more than $1 billion in funds into sustainable investment strategies, and praised Harry and Meghan for bringing a broader understanding of ESG investment.
The company’s three co-founders said in a statement: “Through their cooperation, our common vision for a world where all investments are sustainable investments can reach millions globally. statement.
Although Harry and Meghan can indeed help sustainable investment gain more appeal on the street, it already has a large number of professionally managed assets. According to the Global Sustainable Investment Alliance, the ESG market exceeded US$35 trillion last year, accounting for approximately 36% of all professionally managed assets in the world
The timing of Harry and Meghan’s publication of the Code of Ethics also coincided with the ESG boom facing increasing scrutiny.
ESG benchmarks can vary greatly, as are penalties for failing to meet promised goals-all of which open the door to a form of abuse known as “greenwashing”.
Europe has gone further than the United States and Asia in trying to establish a regulatory framework to eliminate green bleaching. The European ESG product market shrank by US$2 trillion between 2018 and 2020, after regulators made major changes to the exact definition of sustainable investment.
Risks may also cast a shadow over the prospects of the field. Last month, the Bank for International Settlements-like the central bank of the World Central Bank-warned that the growing popularity of green investment could trigger an asset bubble.
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