Scientific Beta

Financial Newswire: "A new study from Scientific Beta has found investment strategies that claim to achieve higher environmental, social and governance (ESG) scores are neutralising its potential to achieve lower carbon emissions. Titled Green Dilution: How ESG Scores Conflict with Climate Investing, the research compared the impact of portfolios built to achieve higher ESG scores and lower carbon intensity with that of portfolios only constructed to reduce carbon intensity, revealing how the inclusion of broader ESG considerations into the portfolio diminished its ability to lower carbon intensity."

Financial Newswire 10/08/2023

"(...) A new study from Scientific Beta has found investment strategies that claim to achieve higher environmental, social and governance (ESG) scores are neutralising its potential to achieve lower carbon emissions. Titled Green Dilution: How ESG Scores Conflict with Climate Investing, the research compared the impact of portfolios built to achieve higher ESG scores and lower carbon intensity with that of portfolios only constructed to reduce carbon intensity, revealing how the inclusion of broader ESG considerations into the portfolio diminished its ability to lower carbon intensity. The authors, Noël Amenc, Felix Goltz, and Antoine Naly, called this phenomenon “green dilution” and found it existed in an average of 92 per cent of portfolios from different providers, with only eight per cent of portfolios with a carbon reduction objective surviving the inclusion of ESG scores in weighting schemes. (...)"

Copyright Financial Newswire a division of FST Media Pty Ltd