You Are Not Doing ESG Investing
Morgan Stanley blog post discussing their view on ESG, sustainable investing and impact investing.
"In our view, ESG is not about doing good, nor is it an investment strategy in itself. ESG is simply a framework that can and, we believe, should be applied to all investment diligence processes. ESG diligence aims to identify and mitigate economic, social and governance risks that could weaken or de-rail an investment."
Investors who do not follow a process that would enable them to identify this company’s environmental shortcomings before they decide to commit their capital are likely to suffer alongside it. One does not have to be a “do-gooder” to see how weak ESG can materially affect investment returns.