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The Biggest ESG Funds Are Beating the Market (Bloomberg, 3 min read) Nine US ESG funds outperformed the S&P last year and seven have outperformed over five years. Companies that can help reduce inequality and those with a long-term competitive edge are some of the factors used to determine ESG investment in the top ranked funds.
ESG Challenges and Solutions (Morningstar, 3 min read) The UN’s Principles for Responsible Investment (PRI) should consider; consistency and clarity in the definition of ESG, the limitations of tracking error and changing ESG rating methodologies. PRI should encourage collaboration as well as education on ESG.
The EU’s Risky Green Taxonomy (Project Syndicate, 4 min read) The EU must consider where financing gaps exist in green activities and which investment products are efficient. By focusing only on which activities are sustainable the EU risks both mis-selling, creating barriers and slowing down the energy transition.