Why Become an ESG Investor?

Are you a devotee, an optimist or a samaritan? Morningstar columnist John Rekenthaler looks at the options - whether you consider yourself an ESG investor or not

John Rekenthaler 8 December, 2020 | 10:14AM
Facebook Twitter LinkedIn

Sustainable city graphic design

The OECD reports that one fifth of professionally managed US assets now invests at least partially on environmental, social, and governance principles. Other sources cite higher figures. Whatever the true amount, ESG’s emergence trails only the growth of indexing as the largest investment trend of the past decade.

That ESG investing has become thoroughly mainstream is demonstrated by the decision of renowned US business school Wharton’s MBA program to add ESG research to its curriculum. Explains Wharton’s dean, Erika James, “The students are asking for it. We’re going to have coursework and reading material and discussions on corporate social responsibility. We have to ... if we want to continue to be an attractive choice for business school students.”

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Find out More about the ESG Commitment Level

Take Me There

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

John Rekenthaler

John Rekenthaler  John Rekenthaler is vice president of research for Morningstar.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement