Scientific Beta

Bloomberg: "A recent report by EDHEC, one of Europe’s top business schools, found that climate factors represent at most 12% of ESG portfolio stock weights on average. To boost their “green scores,” funds simply underweight sectors like electricity, which does nothing to greenify the economy. Bizarrely, the report finds that ESG funds “favor companies whose climate performance deteriorates over time.”"

Bloomberg 02/10/2021

 

"(...) A recent report by EDHEC, one of Europe’s top business schools, found that climate factors represent at most 12% of ESG portfolio stock weights on average. To boost their “green scores,” funds simply underweight sectors like electricity, which does nothing to greenify the economy. Bizarrely, the report finds that ESG funds “favor companies whose climate performance deteriorates over time.” (...)" 

Copyright Bloomberg L.P.