The problems of ESG (and those that criticize it)

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Here’s a note from Robert Rubinstein about this article in the “Responsible Investor” penned by Hugh Wheeler entitled “In defense of ESG – a response to The Economist”:

Thanks for trying to give push back, but ESG as it is done now has failed miserably in restoring the social and environmental balance. Some of the most toxic companies score will on ESG indexes which perplexes investors who want their money to restore or improve the social and environmental balance. How can there be 40 trillion pouring into ESG with all the challenges we face -climate change, water scarcity, food security, social destruction, etc. So that money is not going there or it is a clear definitional issue.

I am not a fan of Economist, but it is hard to back ESG as it is happening now. It has become a fitness club where everyone wants to show their membership card but no one goes to get in shape.

TBLI will be launching a major initiative that we hope will improve ESG and Impact measurement. Hope you can join us. TBLI Better World Prize.