In 2021, The Economist conducted a comprehensive analysis of the world's 20 largest ESG funds and made a rather surprising discovery. Most of them held investments in fossil fuel producers, while others also invested in stakes in gambling, alcohol and tobacco. These findings raise the question: why would ESG funds invest in firms notorious for polluting the environment and undermining public health?

This finding may come as a shock to those who believe that ESG funds are solely invested in companies that align with their ethical and moral values. However, from what I understand, the Economist contends that ESG funds are investing in polluting companies like fossil fuel producers not because they want to, but because these big polluters do not disclose their carbon footprint and ESG funds lack the information necessary to make informed decisions.

While some argue that investing in polluting companies and engaging with them can lead to positive returns, others believe that this approach is inherently flawed and perpetuates the status quo. Ultimately, the debate over the role of ESG funds in shaping the future of our planet is likely to continue, as investors, corporations, and policymakers grapple with the complex challenges of sustainable investing.

#esg #esginvesting #financeandeconomy #oilgas #carbonneutral
#100daysoflearning Day 030

Originally published on My LinkedIn on March 13, 2023.