ESG should be boiled down to one simple measure: emissions
Three letters that won’t save the planet
If you are the type of person who is loth to invest in firms that pollute the planet, mistreat workers and stuff their boards with cronies, you will no doubt be aware of one of the hottest trends in finance: environmental, social and governance (esg) investing. It is an attempt to make capitalism work better and deal with the grave threat posed by climate change. It has ballooned in recent years; the titans of investment management claim that more than a third of their assets, or $35trn in total, are monitored through one esg lens or another. It is on the lips of bosses and officials everywhere.
This article appeared in the Leaders section of the print edition under the headline “Three letters that won’t save the planet”
From the July 23rd 2022 edition
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