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Sustainability Matters

As New Critiques of Sustainable Investing Emerge, Don’t Dump Your ESG Fund

Sustainalytics analyst says critiques fail to understand what ESG has already accomplished.

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The knives are out for environmental, social, and governance investing, notably in two recent essays: This week, a blog post from NYU finance professor Aswath Damodaran, which called ESG “a mistake that will cost companies and investors money, while making the world worse off, but that it create more harm than good for society,” and not long ago from Tariq Fancy, the former chief investment officer for sustainable investing at BlackRock, who has argued that sustainable investing is a “placebo” that allows people to avoid grappling with difficult environmental and social challenges.

Simon MacMahon does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.