Wednesday
January 5
2022

ESG Investing Is Not Sustainable Investing

By Peter Krull

There’s a lot of confusion in the marketplace regarding ESG (Environmental, Social, Governance) and Sustainable, sometimes known as SRI (Sustainable, Responsible, and Impact) investing. Many people think the two terms are interchangeable – I’m here to tell you that they aren’t.

Blackrock BLK 0.0%, Vanguard, and other big investment houses are simply capitalizing on the growing interest in values-aligned investing. In fact, they have invested a significant amount of money in marketing ESG to have you believe that they are the same. Environment, social, and governance metrics are data points that hypothetically deliver insight into how responsible a company is. The problem is that there is no standard by which companies are judged – and the metrics are constantly changing.

Source: Forbes (link opens in a new window)

Categories
Investing
Tags
environmental impact, ESG investing, impact investing, investment, social impact, sustainability