Will “long-term ESG” focus make companies fodder for activists?
– Debate is ongoing about whether a longer-term sustainability outlook by companies makes them more vulnerable to activists
Here is an excerpt from this Forbes article entitled “Do Hedge Funds Create Value? 3 Lessons From Danone And Unilever” by Tima Bansal:
Hedge funds are likely to target corporations that are socially responsible, especially when the company stands above its peers – as was the case with Danone and Unilever. These hedge-funds managers see an opportunity to score quick financial wins. They strip companies of seemingly unnecessary expenditures, such as Danone’s investments in low-carbon technologies and regenerative agriculture.
The comments posted on this note about the article are worth reading…