The Governance Score have excess returns over the long term in the ESG sector and sustainable finance

The Governance Score is often viewed as the most crucial and can be a crucial driver of excess returns over the long term in the ESG sector and sustainable finance.

For example, allegations of misconduct at companies like Alibaba can result in a loss of investor confidence and trust, and icebreaker issues, such as asking uncomfortable questions about sexual history can result in significant losses.

However, it's worth remembering that the outcomes of ESG investing are determined by the investor's objectives. As Sasja Beslik remarked, different investors may have varying goals when making ESG investments, such as generating higher returns, and these objectives must be considered while selecting stocks.

As an individual with a fervent passion for sustainability in finance, I understand the complexity of assessing the governance of companies. It is a challenging task, but one that is crucial in aligning investments with ESG values and driving positive change in the world.

I'd love to hear your opinions on this topic. Kindly share your thoughts in the comments below!

#esg #investments #sustainablefinance
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This article was first posted on my LinkedIn on February 16, 2023