(Institutional Investor) Greenwashing is often in the eye of the beholder, depending largely on one’s sustainable investing philosophy, according to PitchBook analyst Anikka Villegas.
In an analyst note published Monday, Villegas wrote that the growth in environmental, social, and governance investing has come with confusion and disagreement about the definitions of terms like ESG, sustainable investing, and impact investing. As a result of this lack of clarity, many venture capital and private equity firms have been accused of greenwashing — claiming to practice ESG and sustainability but not following through on those promises.
While some firms are guilty of this deception, Villegas argued that many of the greenwashing accusations are a product of a difference in philosophy: Investors have different ideas about what sustainability, ESG, and impact look like in practice.
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