Is sustainable investing just a marketing ploy? | CNBC Reports

In recent years, investors have flocked to funds that claim to meet environmental, social and corporate governance standards, or ESG. But are these investments really contributing to a better world? CNBC’s Silvia Amaro investigates.
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[emsik]

we need to stop buying online, we are killing off local stores buying online, being lazy :(

[nordicvolkan]

No I would not because the standard would have to be much higher. Amazon being part of an ESG fund based on a 2040 promise is a joke .

[theApeShow]

ESG is nightmarish. Locales will be negatively impacted, while a few chosen "winners" will temporarily be shored up, while the long term downtrend of the industry continues. Likely by design, incentivizing to control, subverting both the legislation and economics.

[yayo]

Unpopular opinion- ESG maybe a marketing ploy but as long as it benefits me and the environment, I do not care.

[icuteffu]

This video basically mentions the issue of greenwashing. Yes, companies, such as the Tech giants, may overexaggerate their future plans of prioritising sustainable development to attract investors but that is a challenge and not something to justify scrapping the idea off entirely.

One of the interesting parts of ESG and/or sustainable finance is the concept of integrating a company's ESG/sustainability impact into their financial reports to fully understand a company's operations and objectives, whether the SDGs and sustainability is an actual goal or if it was, in fact, a marketing ploy.

[catherineb.]

To each their own. I know many of the stocks I hold wouldn't be considered ESG friendly, but that's not my investment strategy. If ESG works for you, good for you.

[crafael.]

without annual ecological audit, ESG is just a marketing. make eco audit in corporate operation is compulsory like financial audit and tax.

[Pyovali]

ESG makes the product worse in attempts to "make the world better".

[mmdevani]

ESG funds have outperformed because everyone is investing in such funds.

its herd rush.. 😊

[KT-zxjr]

Energy security and common sense ES + CS will replace the silly ESG policy....

[GillianAllison]

Now financial security through diligent saving and investing should be everyone's priority like seriously. I'm currently 8 months pregnant with my first baby. My fiancé and I have been saving and also investing in the stock market to cover us while I'm on maternity leave. We managed to grow our account up to 263K and I'm so happy we did because now neither of us are working

[SiemaZiomek]

Yes it is, and has nothing to do with saving the enviroment. Have a good day.

[dscottboris]

What’s wrong with thinking about what happens to your goods an services after you made your goods an services?

[ioan_jivan]

It'd be great if ESG score algorithms would be transparent so we can check if they are given fairly.

[gripfc]

Is ESG investing marketing poly?

Yes

[artuselias]

But can ESG investors actually influence the price of a stock of a big company? Non-ESG investors are still going to make sure that the company is fair priced according to profitability.

[MarkPopp]

leave my investments alone Brandon. Shove your ESG!

[rodolfoblasser]

Key points:
1.a) Validating how good a company performs under ESG metrics is business itself, therefore could be corrupted (think risk rates before 2008)

1.b) This might be the new "Non GMO" certification. At the end, it's marketing. Giving the ESG investors what they *want* will ultimately result in better global economies?

2) What could be a good way to not discriminate companies that don't meet ESG criteria and are not necessarily performing against sustainability but rather are not measurable?

[monkeyinadrawer]

How can lower diversification and higher fees mean lower risk and higher performance???

[shanegerkin]

While ESG is not perfect. It is getting better IMO and if anything, it is increasing investor awareness about what kind of companies they are invested in and their practices.