Scientific Beta

Financial Investigator: "It is well known that ESG scores diverge widely across providers, putting their reliability into question. This divergence also reduces any positive real-world impact investment strategies might have that are built on such scores, as investors fail to focus their efforts on a common direction. More recent research has shown that ESG scores actually have negative impacts, as they rely heavily on lofty corporate promises, which serve to hide current harmful corporate practices."

Financial Investigator 16/01/2024

 

By Erik Christiansen, ESG Investment Specialist at Scientific Beta

"(...) It is well known that ESG scores diverge widely across providers, putting their reliability into question. This divergence also reduces any positive real-world impact investment strategies might have that are built on such scores, as investors fail to focus their efforts on a common direction. More recent research has shown that ESG scores actually have negative impacts, as they rely heavily on lofty corporate promises, which serve to hide current harmful corporate practices. And except for carbon emissions reduction targets, ESG promises are not realised by companies in the future either. (...)".

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