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How ESG investing came to a reckoning
With allegations of greenwashing at the highest levels and new questions about investments in fossil fuels and defence companies, does it still make sense to group together environmental, social and governance factors as a catch-all phrase for investors and stakeholders?
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A solar panel being installed on the rooftop of a home in Madrid, Spain, last month.
PHOTO: BLOOMBERG
Harriet Agnew, Adrienne Klasa and Simon Mundy
(FINANCIAL TIMES): The term ESG is less than two decades old, but it may already be coming to the end of its useful life.
The acronym dates back to 2004, when a report commissioned by the United Nations called for "better inclusion of environmental, social and corporate governance (ESG) factors in investment decisions". In the wake of corporate scandals such as Enron and WorldCom, and the Exxon Valdez oil spill, financial institutions eagerly signed on to the "global compact".
