Anne Simpson, global head of sustainability at Franklin Templeton, said that "box ticking round carbon emissions alone, in other words, does not work."

According to McKnights Senior Living, part of the problem regarding ESG investments lies within vague definitions, which leads to difficult examination of the environmental part of the claims.

Peter Reali, managing director of responsible investment and engagement at Nuveen, added that "there’s a lot of pressure on investment managers to demonstrate the value that they’re getting out of their stewardship work."

ESG investing evaluation might actually prove itself useful, since recent examination showed that German asset management group DSW has been accused of greenwashing by exaggerating its ESG claims.

After the company's offices in Frankfurt were paid a visit recently, CEO Asoka Woehrmann resigned, despite the fact that earlier this year, the executive said that DSW's push into ESG investment was "a true success story."

ESG investing has grown on a global level to some 3.5 trillion euros in 2021, since companies and consumers think that investments can be correlated with social and environmental actions.