Mark Yamada’s Post

Tweet! Everybody out of the pool! ESG investing has lost its way. Originally seeking to quantify a company's environmental, social, and governance factors for investors, ESG providers and regulators have created confusing and ineffective measures that may do more harm than good by promising better returns. Because "what gets measured gets attention", hope was that managements would compete for higher scores. But ESG was never meant to outperform. Keeping up with broad averages while excluding certain industries is the goal. Studies like this one are useful to bring investors back to earth. Also useful would be data about how effectively ESG measures create diversity of thought at the corporate decision making level and whether measures lead to improving the environment.

ESG Investing and Financial Returns in Canada (ESG: Myths and Realities)

ESG Investing and Financial Returns in Canada (ESG: Myths and Realities)

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