Here’s an interesting debate. Say, I want to invest with impact, and I invest in a public corporation. But my money go to someone who sold me the shares, not to the company itself – no matter how well it will perform on the “impact” front. Riddle me this: where is impact in such investments?
There is a range of different perspectives on ESG investing. Some investors claim that ESG investing can bring superior returns. Some want to contribute to more sustainable economies. And of course, there are those who would claim that ESG investing is a poorly-disguised charity.
As soon as you start looking into sustainable investing, you get bombarded with jargon: ESG, SRI, CSR… As an investor, you have all the rights to know exactly what you put your money in. You have all the rights to demand more clarity and concreteness from your bank, investment platform or wealth advisor.
Clearly, different ESG scores create confusion. What should investors make of it?
2020 has been a bumper year for impact investing, proving that virtue pays off.
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