ESG in name only? The shorts are watching!

As investment opportunities branded with the ESG tag continue to attract increased capital flows, the importance of conducting proper due diligence and scrutinising the underlying fundamentals of companies that badge themselves as sustainable is becoming ever more essential. 

Boards of directors and executive management should also be particularly wary of overstating the 'green' credentials of the companies they oversee, as an increasing number of investors look for opportunities to assert claims for false, misleading or exaggerated statements made to the market.