“Bottom line on ESG: Overall, it must be a force for good to measure company externalities and hold investors accountable in some way. It just seems we got into a weird phase of its evolution with the concentration in mega-cap tech stocks. I look forward to reading about the movement at the end of this decade and if created the changes we wanted, or more unintended consequences.”
[COMMENTARY]It can be argued that ESG investing does distort the markets. However, isn’t that the point! Now, one could argue that passive index investing means possible carelessness with ESG criteria of companies in the index which over time lowers ESG standards… and returns!
ESG Investing: Does It Distort the Market? By Kevin Cook of Zacks, August 13, 2021, Nasdaq.com, USA.