One of the hottest trends in finance these days is environmental, social and governance (ESG) investing.
This is an attempt to make capitalism work better and deal with the critical threat posed by climate change.
ESG investing has mushroomed in recent years. While the ESG process began with such high hopes in 2004 or thereabouts, the three letters have mutated into shorthand for hype and controversy.
- Right-wing American politicians blame a “climate cartel” for spiraling prices at pump.
- Whistleblowers accuse the industry of “greenwashing” by deceiving its clients.
- Firms from Goldman Sachs to Deutsche Bank face regulatory probes.
The Economist maintains that ESG is “..an unholy mess that needs to be ruthlessly streamlined.”
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