“The study of how short sales affect ESG objectives has gained a lot of attention. According to a recent white paper by the Managed Funds Association and Harvard Management Company, short bets can lower capital investment in the most polluting industries by 3 to 8%. The white paper also states thatshort sellingcan raise the cost of capital and exert downward pressure on equity prices.”
[COMMENTARY]Should short selling be considered a legitimate ESG practice? I think the answer is yes, provided certain well-known and historic safeguards are employed.
Put short selling on the ESG investing table, say hedge fund managers, by Jean Dondo, July 26, 2022, Wealth Professional, Canada.