Sustainable funds must work harder to vet their investments

Digging deep is time-consuming, but if a newspaper can afford to do it, so can an asset manager © Hollie Adams/Bloomberg

It should have been a vindication for the sustainable investment industry. Shares in fast fashion retailer Boohoo lost a third of their value last month after allegations that workers in its UK supply chain were paid £3.50 an hour. Here was the proof that by avoiding companies exposed to environmental, social and governance risks you could also avoid losing money.

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