Oliver Jones: ESG and the passive investment holy grail

Taken off 'like a rocket'

clock • 4 min read

It's not easy being green, and for each investor ESG investing could mean something different, says PortfolioMetrix's Oliver Jones. In this column he looks at why passive ESG investment strategies might work for some investors, while others might need actively managed ESG funds to ensure their needs are being met

To say that interest in environmental, social and governance (ESG) issues has taken off ‘like a rocket' may not appear to be the most apt terminology. Rockets are not known for their environmental-friendliness, with common propellants releasing carbon dioxide, a greenhouse gas. On the other hand, some rockets now use liquid hydrogen fuel, which produce only water vapour exhaust and is pretty harmless. The subtleties around environmental impact highlighted in my analogy demonstrates in a nutshell the dilemma many investors face when trying to choose ESG investment portfolios. It's not eas...

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