Investing with ‘green’ ratings? It’s a gray area

Investors betting trillions on ethically-appealing stocks may not be getting all they expect. Buying into companies based on environmental, social and governance factors, has become a hot trend on Wall Street, spawning a new industry that sells investors company ratings based on those factors and funds dedicated to rated companies. However, some investors and funds may rely too much on the scores of one rating firm, said Dan Hanson, a portfolio manager at Jarislowsky Fraser Global Investment Management.

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