ESG investing a recipe for disaster.
"The attempts being made to expand the fiduciary obligations of pension fund trustees to incorporate ESG and, as yet, ill-defined ‘sustainability′ responsibilities are flawed and dangerous to the extent they weaken the obligation to maximise the financial interests of members…
Empirical evidence to date, using data sets that are publicly available, suggests G is a rewarded investment factor but not when other common factors are already included. ESG factors are likely to correlate with other widely used factors, such as quality, thus adding little, if any, reward. E and S, if anything, have been shown to detract from returns. "
[COMMENTARY]A provocative headline, but a comment of many fiduciary fund managers. Much more research needs to be done concerning the E, S, and G, individual factors on influencing stock prices.
ESG investing a recipe for disaster, by Paul Bevin, December 11, 2018, Top 1,000 Funds, Australia.