“While ESG investing gets promoted as a way for individuals to’invest with their principals,’such has been a windfall marketing scheme by Wall Street firms.”
[COMMENTARY]The writer, Mr. Roberts, completely misses the whole idea of ESG: that is for investors to invest in companies that not only reflect high personal values but to invest in companies that are dutifully applying ESG principles to their operations for long-term shareholder returns.
Over time, companies that pay attention to the environment, have good relations with all stakeholders, and are exceptionally well governed, are likely to have higher profits.
Yes, many financial firms have engaged in greenwashing and this is now being addressed by various regulatory authorities. But ESG investing will survive because over the long-term it’ll simply make more money for investors.
ESG Underperformance Will Be Its Undoing, by Lance Roberts, July 28, 2022, Advisor Perspectives, USA.