If you can afford to put money aside, investing it wisely can see it grow without the need for input on your part – and some people prioritize the return on their investment over anything else.
But that is not true for all. More and more people want to be sure their money is not being used in a way that contradicts their values. Others go further and want to be sure that some or all of their investments are environmentally or socially positive. For example, they may want their money to be in solar energy projects or companies that build social housing, so that they are making a positive contribution to the future.
A lot of funds make claims about their eco or socially conscious credentials, but not all are telling the truth. An investor who chose them specifically for this reason has the right to be upset if they discover they were misled.
SEC takes action over misleading statements
The Securities and Exchange Commission is willing to take action against companies that engage in greenwashing over such matters. One example is Invesco Advisers, Inc., which the SEC charged in November 2024 for failing to meet the percentage of environmental and social governance investment it promised investors it would.
Trusting firms with your money is not just about trusting them not to steal it from you. It’s also being able to trust them to use it in the ways they told you they would. If they breach that trust, then you may want to learn about your options for holding them to account.
