“A new analysis finds that selling off stocks in corporations that don’t meet your values has minimal impact on their behavior.”
[COMMENTARY]This research agrees with the activist funds that say you need to invest in ‘dirty’ companies to change them. When enough investors seeking corporate change invest in companies performing poorly in ESG metrics, they can influence or change the boards of these companies and effect change that way. Hence, investment, rather than divestment, is the key to moving companies in the direction of ESG.
Why Divestment Doesn’t Hurt “Dirty” Companies, by Alexander Gelfand, October 27, 2021, Stanford Business, USA.