JP Morgan promoted its environmental and sustainable funds, which invested over £200 million in Glencore, a mining giant facing criticism for its coal operations in South Africa. Despite Glencore’s commitment to mitigation and community relations, it remains under government investigation for multiple environmental and human rights violations. This investment raised concerns about the authenticity of ESG claims and potential greenwashing. ​The Guardian

Missing Controls:

• Weak ESG Screening for Investments: No stringent due diligence on high-risk industries like mining.
• No Independent Sustainability Assessment: Investment decisions were not cross-checked with ESG benchmarks.
• Failure in Ethical Oversight: No governance structure to ensure investments align with ESG mandates.
• Lack of Transparent Fund Reporting: Investors were unaware of exposure to high-risk entities.

How D360 Can Help:
Introduce enhanced ESG risk assessment tools for investment portfolios.
Implement third-party ESG verification to validate sustainability claims.
Establish clear ethical investment guidelines to prevent exposure to harmful industries.
Develop real-time ESG impact tracking dashboards for investors.