“Since ESG lacks definitions, it can often mean different things to different people, said Lisa Sachs, who heads Columbia University’s Center on Sustainable Investment.
And because ESG integration is often conflated with other responsible investment strategies such as impact investing and negative and positive screening, it’s helping to create a false impression that the world of money management is directing capital towards helping solve societal ills.”
[COMMENTARY]As I’ve said previously both ESG reporting standards and funds touting ESG credentials need to have more stringent standards. However, there is a caveat to this. Funds that explicitly invest in companies beginning their ESG journeys. Studies have shown that such companies can see more rapid stock appreciation than companies with established ESG credentials.
I believe that the Global Sustainable Investment Alliance who collates the data needs to have categories varying from ‘deep’ green to ‘light’ green in terms of assets under management!
There’s $35 Trillion Invested in Sustainability, but $25 Trillion of That Isn’t Doing Much, by Saijel Kishan, August 18, 2021, Bloomberg Green, Australia.