Scientific Beta

Capital Monitor: "For example, a recent report from the French EDHEC Business School, called 'Doing Good or Feeling Good? Detecting Greenwashing in Climate Investing', argues that fund managers must think beyond simply excluding 'bad' companies from individual funds. Instead, they must consider how their ESG funds align with energy transition. Among other critiques it levies at ESG fund strategies, the EDHEC report makes the striking claim that rather than punishing high emitters, current investment strategies reward, inadvertently or otherwise, some companies for increasing their emissions."

Capital Monitor 13/10/2021

"(...) For example, a recent report from the French EDHEC Business School, called 'Doing Good or Feeling Good? Detecting Greenwashing in Climate Investing', argues that fund managers must think beyond simply excluding 'bad' companies from individual funds. Instead, they must consider how their ESG funds align with energy transition. Among other critiques it levies at ESG fund strategies, the EDHEC report makes the striking claim that rather than punishing high emitters, current investment strategies reward, inadvertently or otherwise, some companies for increasing their emissions. EDHEC finds that 35% of companies with declining climate performance, or increasing emissions, are ‘rewarded’ with an increase in portfolio weighting. (...)"