Scientific Beta

Money Management: "Using low carbon strategies reduces portfolio performance and can lead to problems with concentration and investability, according to Scientific Beta. The research organisation said investors were mistakenly using low carbon strategies as a way to add alpha to their performance. In its research paper, When Greenness is Mistaken for Alpha: Pitfalls in Constructing Low Carbon Equity Portfolios, it said using low carbon could also add higher costs."

Money Management 08/06/2021

"(...) Using low carbon strategies reduces portfolio performance and can lead to problems with concentration and investability, according to Scientific Beta. The research organisation said investors were mistakenly using low carbon strategies as a way to add alpha to their performance. In its research paper, When Greenness is Mistaken for Alpha: Pitfalls in Constructing Low Carbon Equity Portfolios, it said using low carbon could also add higher costs. (...) Dr Noel Amenc, chief executive of Scientific Beta, said: “The pressing issue faced by society is tackling climate change, not generating alpha. And while low carbon alpha appears to be fake, the damage from climate change unfortunately is real”. (...)"