Biden administration’s battle against greenwashing

Government moves to crack down on companies misleading investors over climate and overstating their green credentials

After only a few months in office no one doubts the Biden administration’s commitment to combat climate change. An extremely important component of the battle, albeit less visible than re-entry into the Paris Agreement, the Earth Day climate summit, and stringent new carbon reduction targets for 2030, are moves the administration is making to crack down on greenwashing—companies misleading investors over their climate risks, and companies and providers of investment vehicles overstating their green credentials. The incentive to greenwash has surged along with ESG-based investing in recent years, and it will only get worse based on forecasts of future investment trends. For example, research