NEW:  Greenwashing examines the practices and performance of among hedge funds that have endorsed the United Nations Principles for Responsible Investment, signaling commitment to including Environmental, Social, and Governance factors in investment decisions, but not honoring that commitment (i.e. “greenwash”), finding funds that endorse Responsible Investment on average underperform other hedge funds, performance differences between funds that endorse and honor Responsible Investment commitments and those that do not endorse Responsible Investment are modest, and funds that greenwash underperform both genuinely green and non-green funds, among many other findings.

Reuters discusses “greenwashing” — corporate attempts to benefit from positive investor sentiment toward environmental, social, and governance initiatives by misrepresenting commitment to sustainability — which is described as rampant, and of interest to short-selling investors in Villains or visionaries? Hedge funds short companies they say ‘greenwash’.