Sustainable investing—the strategy and practice of incorporating environmental, social and governance (ESG) factors in investment decisions—is on the rise, but it is not as simple as it seems to be. There are concerns that unscrupulous companies and fund managers are deceptively trumpeting their ESG ratings and accolades while making token gestures towards operating sustainably or implementing ESG investment processes. Because of the potential benefits that accompany ESG-alignment, greenwashing has emerged as its evil twin. What is greenwashing? Greenwashing is the practice of conveying a false impression or presenting misleading and exaggerated claims about environmental efforts. It results in investors being unable to allocate capital towards their goals and values, specifically those aiming to invest in sustainably operated companies or in sustainable funds. Greenwashing is becoming a growing concern as vast amounts of capital flow into funds that specialise in selecting companies viewed to adhere to ESG principles. One notable company...