The Truth about Sustainable Investing [ESG Funds]

Proponents of ESG investing argue that addressing climate change, improving corporate governance, and promoting diversity can actually boost profits.

However, critics and regulators have raised concerns about these claims as well concerns over just how green, diverse, or socially conscious these companies are.

Researchers at Columbia University and the London School of Economics compared the record of U.S. companies included in ESG fund portfolios compared to those that were not and analyzed their findings in the Harvard Business Review.

They found that companies in the ESG portfolios had a worse compliance record for both labor and environmental rules. They also found that companies that added to ESG portfolios did not subsequently improve compliance with labor or environmental regulations.

#shorts #esg #esginvesting #sustainableinvesting #impactinvesting

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