The Rise Of ESG Investing

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Published 2020-06-25
ESG is a catch-all term for investing strategies that consider a company’s environmental, social and governance factors. ESG investing is predicted to surge following the coronavirus pandemic and demonstrations over racial justice. Consumers and Wall Street investors alike are increasingly holding companies accountable for their performance on environmental, social and governance benchmarks—or ESG, for short. Here's how ESG investing could transform the financial and business industry.

Before the police killing of George Floyd in Minnesota and before Covid-19 forced corporate America into lockdown, companies were being singled out for social responsibility.

It’s a trend that began to accelerate well before the current crises, and has now gone mainstream.

“Investors were really flocking to ESG strategies,” said Valerie Grant, senior portfolio manager of responsible investing at AllianceBernstein. “For ETFs, there were $8 billion inflows into ESG strategies. And for mainstream funds, the flows were $12 billion.”

While critics have called ESG investing vague and even a fraud, analysts predict it will double in 2020 and become integrated into the investment decisions of every investor.

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The Rise Of Socially Conscious Investing

All Comments (21)
  • @TheLifePhoenix
    LAWYER TALK.... but we know how to read between the lines. These good “priorities” have been presented as if we all agree on them. The agenda and narrative will bleed in how ever they make it, because it’s not about us. It’s about them and their $$$ In the land of the blind, the one-eyed man is king
  • @gaozhi2007
    ONE BANK to rule them all, one bank to find them. ONE BANK to rank them all and in the darkness bind them!!
  • @skenzyme81
    We only invest in companies in the bottom quartile of ESG scores.
  • @Douken
    ESG doesn’t make money to investors.
  • @Gr8dane85
    Ask Anheuser Busch about the dangers of focusing on their ESG rating.
  • @Lifeissorich.
    ESG investing is a waste considering that a lot of returns come from non socially responsible companies like Altria.
  • Mixing numbers with emotions goes against every planetary law in the galaxy. 2+2=4 regardless of politics. Companies will go were the money is, period. I hope is goes to sustainable energy, but I can't ask companies to lose money doing it. That's like wishing Santa was real.
  • @janejones3170
    Why don’t big corporations just pay their taxes instead of keeping it in tax havens and paying less than I do
  • @skenzyme81
    So corporate wokeness is an empty smokescreen because it’s the easiest to game?
  • This is BS. We are in the process of moving our money right now. Just have to find a banking institution that doesn’t follow this ESG criteria. I am a minority female millennium as well. I can’t have this. Smh people better wake the hell up.
  • @zyfigamer
    This is like the infant stage of the mythical market alternative to regulation that some people talk about.
  • @tonyotag
    ESG investing? Sounds like practical fascism enforcement. Corporations as Government rather than goverment regulating Corporations and the citizens (as human beings) having practical impact on the rules of corporations per voting in goverment.