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The Unintended Consequences of ESG Activism (Forbes, 6 min read) One of the largest asset managers is divesting from fossil fuel stocks from their active funds to adhere to ESG criteria. Due to their sheer size, this could significantly impact stock price and hence harm their own investors within their passive funds. Since a lot of these investors are pension funds, this poses a market risk and violates social responsibility.
COVID-19 and ESG: Prepare for the New Normal (Advisor Perspectives, 3 min read) Firms that solely focused on shareholder value were exposed during the pandemic. After this crisis, a firm’s ‘preparedness’ for the next crisis would be evaluated on their ESG practices and goals.