Scientific Beta

Benefits and Pensions Monitor: "A paper from Scientific Beta underscores the danger of using average overall ESG (environment, social, and governance) scores at the portfolio level, whether for investment or reporting decisions. ‘Scoring against ESG? Avoiding the Pitfalls of ESG Scores in Portfolio Construction’ shows while the ESG score-based approach to responsible investing serves the commercial interests of rating providers, these ESG scores would not be able to guide investors who are concerned about social welfare and environmental sustainability."

Benefits and Pensions Monitor 23/12/2020

"(...) A paper from Scientific Beta underscores the danger of using average overall ESG (environment, social, and governance) scores at the portfolio level, whether for investment or reporting decisions. ‘Scoring against ESG? Avoiding the Pitfalls of ESG Scores in Portfolio Construction’ shows while the ESG score-based approach to responsible investing serves the commercial interests of rating providers, these ESG scores would not be able to guide investors who are concerned about social welfare and environmental sustainability. Its criticism echoes that of international organizations as diverse as the OECD and the WWF who have warned against viewing ESG scores as a meaningful indicator of an investment strategy’s contribution to the achievement of ESG goals, in particular the fight against climate change. (...)"