{"id":23091,"date":"2021-06-07T15:18:06","date_gmt":"2021-06-07T22:18:06","guid":{"rendered":"https:\/\/genuscap.com\/?p=23091"},"modified":"2026-03-17T13:38:31","modified_gmt":"2026-03-17T20:38:31","slug":"is-impact-washing-the-new-greenwashing","status":"publish","type":"post","link":"https:\/\/genuscap.com\/fr\/is-impact-washing-the-new-greenwashing\/","title":{"rendered":"L'impact washing est-il le nouveau greenwashing ?"},"content":{"rendered":"\t\t
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With the rise of impact investments available to investors in 2021, here\u2019s what sustainable investors need to know about impact washing vs. greenwashing, and how to tell the difference between the two.\n<\/b><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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While the term \u201cimpact washing\u201d may be unfamiliar to many, most people are familiar with the concept of \u201cgreenwashing\u201d. The phrase was coined b<\/a>y U.S. environmentalist Jay Westerv<\/a>eld<\/a> in 1986 for an essay he wrote about the hotel practice of putting placards in rooms to promote the reuse of towels as a way of \u201csaving the environment.\u201d<\/p>

Today, greenwashing describes any effort to put a positive spin on the environmental activities of a company or organization\u2014often downplaying or misrepresenting facts that counter these activities.<\/p>

Consumers and investors have developed a good nose for greenwashing over the past three decades, so now attention is turning to the question of \u201cimpact\u201d\u2014and whether companies are truly having a net-positive impact in their activities around the world.<\/p>

It\u2019s not enough to simply tell people you\u2019re \u201csaving the environment\u201d; you have to show\u2014through everything you do\u2014that you\u2019re committed to leaving the world in a better place than you found it.<\/p><\/div><\/div><\/div><\/div><\/div><\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Coming clean on impact washing<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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According to Mike Thiessen, Chief Sustainability Officer at Genus, impact washing is similar to greenwashing<\/a> in that investment firms might say they\u2019re investing in green investments, clean tech or companies involved in renewable energy or electrical vehicles, \u201cbut they\u2019re actually just investing in companies that aren\u2019t as bad<\/em> as other companies.\u201d<\/p>

A lot of so-called \u201cgreen\u201d investment funds, he notes, have holdings in companies like Suncor or Enbridge: \u201cThey\u2019re not actually green, but they\u2019re better than the benchmark.\u201d<\/p>

Where you really see the impact washing, he adds, is in marketing materials that equate impact with a high ESG<\/a> (Environment, Social and Governance) score. ESG scores, while a useful investor tool, are not without their critics<\/a>\u2014and the focus with ESG is on the company\u2019s management, not its sustainable impact.<\/p>

\u201cThe companies in these funds will have really good operations,\u201d says Thiessen. \u201cThey might have a very clean supply chain, or they treat their employees right. These firms could have 0% of their revenue coming from impactful activities\u2014but since they\u2019re \u2018good companies,\u2019 they\u2019ll make it into these impact funds.\u201d<\/p>

By contrast, he points to Vestas Wind Systems<\/a>\u2014one of the firms in Genus\u2019 Fossil-FreeTM<\/sup> High Impact fund\u2014as an example of a company where the vast majority of revenue comes from impactful activities.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\tPart of what we do at Genus is get people excited about making an impact and investing in impactful activities.\n\n\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tMike Thiessen, Chief Sustainability Officer at Genus<\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTweet<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Authentic impact investing is measurable<\/strong><\/h3><\/div><\/div><\/div><\/div><\/div><\/section>

For impact investors, having a clear and measurable way to cut through any impact washing and evaluate actual impact is critical. At Genus, we start with the 17 Sustainable Development Goals (SDGs) set out in the UN\u2019s 2030 Agenda for Sustainable Development<\/a>. That\u2019s our foundational piece, with companies in Genus\u2019 high-impact portfolio rated for how their products or services contribute to those SDGs; that, combined with a series of other sustainability filters, produces a portfolio of companies that average 50% or higher positive impact.<\/p>

Thiessen notes that there are a variety of impact measurement tools available, including a framework from the S<\/a>ustainable Accounting Standards Board<\/a> and the Impact Management Project. Both allow portfolio managers to drill deep into each company\u2019s sustainability efforts in tremendous detail. \u201cBut it takes a lot of work per company\u2014and you don\u2019t even come out with a nice number that you can show clients. It\u2019s just something that you can check off.\u201d<\/p><\/div><\/div><\/div><\/div><\/div><\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\tLook at the actual holdings in a particular fund. That\u2019s what a lot of investors miss when they get into a green fund or an impact fund\n\n\t\t\t<\/p>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\tMike Thiessen, director of sustainable investments at Genus<\/cite>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTweet<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/blockquote>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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He argues instead that the Genus 2020 Net Impact Report (which demonstrates how our toolkit includes leveraging the UN SDGs, and using market research data from Sustainalytics and MSCI) is an excellent way to distill all the information into one score. \u201cPart of what we do at Genus is get people excited about making an impact and investing in impactful activities. If we gave them a whole bunch of different stats that they didn\u2019t really understand, it\u2019s not really going to excite anybody. And it\u2019s going to be hard to compare across funds.\u201d<\/p>

While it\u2019s critical that investors talk to a financial advisor to truly understand a company\u2019s net impact score<\/a>, Thiessen says that any socially conscious investor can do a bit of research on their own to separate the wheat from the chaff. \u201cLook at the actual holdings in a particular fund. That\u2019s what a lot of investors miss when they get into a green fund or an impact fund: They read the high-level materials, but they don\u2019t actually look at what\u2019s in there.\u201d<\/p>

And if a fund is full of companies claiming to be saving the planet by washing fewer towels? Well, perhaps it\u2019s time to skip the spin cycle, evaluate the potential for impact washing and find a fund that comes clean about its commitment to creating true impact.<\/p>

Learn about our new <\/em>Green Bond Fund<\/em><\/a> or <\/em>contact us<\/em><\/a> to chat about a personalized plan tailored to the impact you want to make in the world.<\/em><\/p><\/div><\/div><\/div><\/div><\/div><\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Want to know more?\n<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\"Sunny<\/div>\n\t\t<\/a>\n\t\t\t\t
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\n\t\t\t\n\t\t\t\tIntroducing the Genus Global Impact Bond Fund\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t
\n\t\t\t\t\t\n\t\t\tmai 3, 2021\t\t<\/span>\n\t\t\t\t\n\t\t\tPas de commentaire\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t
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A new way to green your investment portfolio The future just got a little greener. Today, Genus is launching a new way for you to green your investment portfolio. Our Global Impact Bond Fund is the latest addition to our Fossil Free Fund Suite and<\/p>\n\t\t<\/div>\n\t\t\n\t\t\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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OR CONTACT US<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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