A further market distortion arises from what academics Florian Berg, Julian Kölbel and Roberto Rigobon call “aggregate confusion."
A new paper highlights just how tricky it is to come up with an objective, rigorous ESG investing framework.
"Investors should purchase stocks from established companies—such as supermarkets—whose revenues are indexed to the inflation rate."
"The Big Mac Index from The Economist is probably the simplest statistic ever created. Sadly, for the World Bank, it is just as good as the PPP.”
The lack of standardization on ESG scoring "makes it difficult to evaluate the ESG performance of companies, funds and portfolios."
"Win-win situations do not exist here. We all have to bear the cost, and that will show up in inflation, especially in gasoline."
"ESG ratings do not, currently, play as important a role as they could in guiding companies toward improvement."
“Our five founding members of the ACP will serve as valuable thought partners with our research team."
“We don't have a very good way to measure ethical behavior."
"The financial industry is one of the least diverse industries in the United States."
