Labels are shorthand. Does the person using the label mean the same thing as you do?
“For Some Bonds, It’s Too Easy Being Green,” The Wall Street Journal, August 20, 2018 B1. A quarter of Chinese bonds marketed as green bonds were rejected by “a de facto watchdog for the market” as not really being environmentally friendly.
On the Internet, no one knows you’re a dog. In the world of finance, who validates your dogness? What does it say about a company that tells fibs about the greenness of their bonds?
Are labels inherently suspect? Or inherently believable?