Elon Musk recently tweeted that environmental-social-governance investing “ is a scam ,” after Tesla got removed from a major ESG index for a lack of disclosure around key environmental and social issues and allegations of racism on the factory floor.
ESG investing is a form of so-called sustainable investing that considers environmental, social, and governance factors to judge an investment’s financial returns and its overall impact.
An investment’s ESG score measures the sustainability of an investment in those specific categories. Upward of $6 trillion is now invested in funds deemed to have good ESG scores.
Some of the challenges are as follows: Not all ESG factors are easily quantifiable, and such factors may not directly translate into earnings growth or enhanced performance for the firm.Current corporate sustainability disclosures are heavily skewed toward process and procedures, as opposed to actual performance.ESG is indeed part of a scam based on the flawed World […]
Excerpt Sourced From: amgreatness.com
