How ESG Metrics Work And Why All Investors Should Care

"The Conscious Investor" is presented by Nuveen.

Martin Kremenstein, head of retirement and ETF solutions at Nuveen, explains how ESG metrics serve as an indicator of quality and can be used as a risk management tool.

According to research from MSCI, companies in the bottom ESG quintile have been twice as likely to suffer a catastrophic loss (over 95% cumulative loss) within three years.

MSCI downgraded Equifax to the lowest ESG rating on cybersecurity concerns a year before the data breach was announced.

Kremenstein says that Facebook was excluded from Nuveen's NuShares ESG Large-Cap Growth ETF from the time it launched in December 2016. He explains, "it scored relatively poorly, compared to other tech companies over data privacy concerns."

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[nicholasmanning]

He just grouped nuclear power in with gambling companies, tobacco, and alcohol. WTF??

[AskRemy]

This is ultimate control. This scoring will determine if individuals can get loans or participate in commerce

[oliverfasola]

Invest with your values, I want a portfolio with a negative ESG

[barisba.]

The speaker speaks slowly when telling normal things but speaks extremely fast when telling important details or terms, so that I sense a sinisterness there. Thanks to this guy, I'm now thinking how bad ESG is.

[qwertyqart]

Divesting from nuclear - how stupid is moving away from most green of the tech

[arthurfoyt]

ESG scores are irrelevant at best, evil at worst.
The worst thing is that a very small group of people gain control over the monetary system.

[charlesmiller]

I agree with all those who think this is a crock of shite. We have eco conscious green loving security conscious companies now, the customer wins and determines the type of company and success . Everything the interviewee stated is already taken care of. No more government intervention

[MaryOlson]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[kgrimm]

Is it just me or does this seem extremely dangerous in the particular social/political climate we're in?

[eliyahuguttman]

Did I hear him correctly??? Divesting from That’s absurd. It’s literally the cleanest energy

[ramsal]

Let me get this straight, if somebody found the cure for cancer but did not want to contribute to the environment or the social justice warrior causes, they would have a low score right?

[Pyovali]

West's own version of the social credit system

[shelbythedon]

Shareholders will be replaced by stakeholders, you left that out.
What will ALL the people who have invested for decades get? Nothing.

[UnidadFamiliarCristiana]

This is what conservatives call corporate wokeness. The more virtue of a company can signal, the more its ESG value increases

[ericsanjuan]

We need to pass a federal law banning ESG

[MisterDoctorAustin]

This aged well as our banks fail due to investing in ESG instead of profitability

[IndyRockStar]

You're witnessing the end of Capitalism and the truly Free Market! Adam Smith R.I.P.

[knightf]

Nike which runs sweatshops in Asia has better ESG score than Tesla.

[Individual_Lives_Matter]

More “well-intentioned” central planning.

[charlesterrizzi]

ESG is also the driver of trans marketing efforts, like Dyldo muhlvaney. Companies actually get points for doing edgey stuff like that