Sustainability Is Real and Smart Investors Know It.
By Tensie Whelan
Amid a mounting backlash against ESG, critics have argued that investors should care less about benchmarks of environmental, social and governance issues and should focus instead more on traditional financial analysis.
But it still matters to investors if companies pollute our waterways, exploit their workers or poison their customers. Even US states with curbs on ESG investment products, such as Texas and Florida, prosecute businesses for bad behaviour on ESG issues, with a negative impact on the companies’ bottom line.
And it is not just a matter of risk control. More broadly, corporate strategies that take sustainability into account can boost financial performance.
Read the full Financial Times article.
Tensie Whelan is a Clinical Professor of Business and Society and Director of the Center for Sustainable Business.