Why Greenwashing Is Your Biggest Risk as an Impact Investor

Greenwashing is the gap between a company’s sustainability image and its actual operations. For impact investors, the most common form is holding an ESG fund that still owns fossil fuel producers, weapons manufacturers, or tobacco companies — because the aggregate ESG rating is high enough to pass a threshold screen. When that happens, capital intended for positive outcomes ends up subsidising the very issues the investor wanted to avoid. This guide explains how to identify greenwashing at the holding level using Ziggma’s harm-category exclusions and revenue exposure data.

The full guide is coming soon. In the meantime, the Ziggma Impact Investing Guide covers the greenwashing risk alongside all six public-market impact strategies.

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