The Rise of Lab-Grown Diamonds and the Challenges of Sustainable Investing
Published: 2023-10-29Lab-grown diamonds are gaining popularity as an affordable alternative to natural diamonds. However, there is a significant difference in resale value, with natural diamonds retaining their worth indefinitely. The sustainability and ethical aspects of lab-grown diamonds vary depending on the company’s processes. Another alternative to natural diamonds is moissanite, although it can be distinguished from a diamond with the naked eye. Despite their rising popularity, lab-grown diamonds still only make up 2% of the total diamond jewelry market.
The concept of net-zero emissions has been greenwashed, with major energy producers signing up to the pledge without committing to phasing out fossil fuels or addressing end-use emissions. Instead, they rely on unproven technologies and carbon credits, while continuing to invest in oil and gas production. The lack of proper vetting and monitoring allows companies to game the system, undermining the credibility of these pledges.
In the superannuation industry, the lack of consistency in labeling sustainable investment options is causing confusion among investors. Many Australians are unfamiliar with terms such as “net-zero” and “greenwashing,” and less than a third are aware of ESG and sustainable investing. The use of inconsistent terminologies and descriptions contributes to this confusion.
While green bonds are primarily focused on funding environmentally positive projects, they also have social co-benefits such as decent working conditions and community revitalization. The Global Green Bond Index addresses 11 UN Sustainable Development Goals related to social outcomes. In the first half of 2023, $309.81bn of green bonds and $95.49bn of social bonds were issued.
ESG investing has declined in the United States, but carbon markets are expected to exceed $800 billion this year. Carbon markets allow companies and individuals to offset their greenhouse gas emissions through the purchase of carbon credits. However, concerns have been raised about the efficacy of carbon offsets in controlling climate change. Renewable Energy Credits (RECs) are suggested as a better alternative.
The lack of consistency in labeling sustainable investment options also affects the superannuation industry in Australia, where less than a third of Australians are aware of ESG and sustainable investing. The lack of understanding is attributed to inconsistent terminologies and descriptions.
The Inclusive ESG Tool and Score launched by the FII Institute aims to improve data on ESG factors in emerging markets. This tool has the potential to reduce the ESG investment gap in emerging markets. Despite accounting for 58% of global GDP, emerging markets receive less than 10% of ESG capital flows.
The backlash against “woke” funds has been significant, with Larry Fink of BlackRock no longer using the term ESG due to its weaponization. In Australia, sustainable fund flows are slowing down, but the sector’s total size has increased. European ESG funds, on the other hand, have attracted new money. Despite challenges, companies are still prioritizing ESG issues and setting environmental targets.
In conclusion, greenwashing and inconsistent labeling continue to be prevalent in various industries, including diamonds, energy, investing, and sustainable funds. It is crucial for consumers and investors to be aware of these practices and seek transparency and accountability from companies.
https://www.huffpost.com/entry/whats-the-difference-between-natural-and-lab-grown-diamonds-goog_l_651ad603e4b077bb26458133Related news on 2023-10-29
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