• The company is not ready to comment but agreed to pay the fine imposed by the SEC.
• The SEC says Invesco failed to adopt and implement written policies and procedures concerning ESG integration.

Invesco Advisers, a US-based investment management firm, was fined $17.5 million by the U.S. Securities and Exchange Commission (SEC).

The company has misled its clients by overstating the extent to which its investment portfolio was guided by environmental, social, and governance (ESG) principles.

The US regulatory authority said that from 2020 to 2022, Invesco claimed 70–94% of its investments were ESG-integrated. Yet, much of the money was actually in funds that did not consider ESG aspects, which misled investors.

The SEC accused the company of greenwashing, a tactic some companies use to project their investments as socially and environmentally responsible when they actually are not.

Read more: What Are The Main Greenwashing Tactics Companies Use?

Invesco did not comment on these claims, chose to pay the penalty, and vowed to improve its policies. This follows a recent fine of $4 million imposed on another investment company, WisdomTree Asset Management, for misleading statements about ESG investments.

“Invesco saw commercial value in claiming that a high percentage of company-wide assets were ESG integrated. But saying it doesn’t make it so,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “Companies should be straightforward with their clients and investors rather than seeking to capitalize on investing trends and buzzwords.”

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Source: Benefits Pro