Forbes: Who Supports ESG Investing And Who’s Against It (And Why)
March 27, 2023
In “Who Supports ESG Investing And Who’s Against It (And Why)” (Forbes March 27, 2023), Michael James Maloney discusses what ESG is and how it works. He notes, “The basic theory behind ESG investing is that a company’s returns may be impacted by environmental, social, and governance factors in addition to traditional financial factors,” and goes on to add, “The most common environmental issues cited are the effects of climate change like floods or fires.”
Concerning ESG in practice, he adds, “Proponents argue that traditional shareholder capitalism is too narrowly focused on returns to shareholders while ignoring negative impacts on non-shareholders. ESG is offered as an alternative that expands the scope of issues considered by fiduciaries.”
