Scientific Beta

TVP World: "Scientific Beta specifically looked at 25 different ESG scores from three major providers: Moody’s, MSCI, and Refinitiv. Felix Goltz and co discovered that 92% of the reduction in carbon intensity that investors gain by solely weighting stocks for their carbon intensity is lost when ESG scores are added as a partial weight determinant.“

TVP World 03/08/2023

"(...) Scientific Beta specifically looked at 25 different ESG scores from three major providers: Moody’s, MSCI, and Refinitiv. Felix Goltz and co discovered that 92% of the reduction in carbon intensity that investors gain by solely weighting stocks for their carbon intensity is lost when ESG scores are added as a partial weight determinant. “On average, social and governance scores more than completely reversed the carbon reduction objective,” Goltz highlighted. He went on to suggest the reason for this could be that “the correlation between ESG scores and carbon intensity is close to zero [at 4%]. The two objectives are unrelated and are therefore hard for investors to simultaneously achieve.” (...)"