“Financial relevance trumps politics, according to interviews conducted by Morningstar Indexes and Sustainalytics.”

[COMMENTARY] The factors underlying ESG are relevant to corporate performance and profits. That’s it! Period! However, the main quibble I have is how ESG raters mostly ignore in their corporate ratings the ‘societal value’ of what a company produces. By value, I mean does the service or product add or deduct value to life, to the environment, to society? Sure, in many cases, this is hard to measure, but some, like the Corporate Knights rankings, are at least attempting this.
ESG Remains Important for Pension Funds and Asset Owners, by Thomas Kuh, July 12, 2023, Morningstar, USA.