ESG Investing Isn’t Designed to Save the Planet
On August 2, 2022 by Ken PuckerBy: Ken Pucker & Andrew King
Harvard Business Review
Most people assume that ESG Investing is designed to reward companies that are helping the planet. In fact, ESG ratings which underlie ESG fund selection are based on “single materiality” — the impact of the changing world on a company P&L, not the reverse. Asset management firms have been happy to let the confusion go uncorrected — ESG funds are highly popular and come with higher management fees. The danger with ESG investing is that it might convince policy makers that the market can solve major societal challenges such as climate change — when in fact only government intervention can help the planet avoid a climate catastrophe
Read the full article: https://hbr.org/2022/08/esg-investing-isnt-designed-to-save-the-planet