Scientific Beta

InvestorDaily: "As the superannuation sector continues to grapple with charting, and staying on the path to net zero targets, global index provider Scientific Beta suggests funds face a tricky task ahead in trying to accommodate numerous well-intended objectives. Last year, its research highlighted how “green dilution” remained strong when putting large emphasis on other environmental, social and governance (ESG) considerations alongside targeting low carbon emissions in equity portfolios."

InvestorDaily 01/03/2024

"(...) As the superannuation sector continues to grapple with charting, and staying on the path to net zero targets, global index provider Scientific Beta suggests funds face a tricky task ahead in trying to accommodate numerous well-intended objectives. Last year, its research highlighted how “green dilution” remained strong when putting large emphasis on other environmental, social and governance (ESG) considerations alongside targeting low carbon emissions in equity portfolios. The average dilution stood at some 92 per cent, according to Erik Christiansen, head of investment solutions for Scientific Beta. “With ESG, many investors tend to have a lot of different objectives at the same time. Very often, they come up with a long list of issues they want to [tackle],” he told InvestorDaily. “The problem is, the more targets or objectives you try to pursue at the same time, the less you are going to achieve on any one of them. With just, say, climate change on your mind, you’re probably going to be able to do something more meaningful with climate change, but the more objectives you include, you will dilute that objective. You can’t do everything well at the same time – that’s the idea of green dilution.” (...)"