Oil Is the New Oil. Sustainable Investing in an Energy Crisis.
What happens to sustainable investing during an energy crisis? Regardless of whether the current crisis undermines or accelerates sustainable investing, criticism of ESG-focused investing misses the diversity within the field. The point is not to assess whether the various approaches are good or bad but to analyze them from an investment and ESG perspectives. Within this paper, Dan Lefkovitz and Robert Edwards use Morningstar Indexes’ wide range of ESG benchmarks to illustrate the trade-offs inherent to different responses to the energy crisis.
- A glimpse into how past energy crises explain why the future of energy is so difficult to forecast.
- An overview of the Morningstar Sustainable-Investing Framework, which aims to clarify motivations, approaches, and portfolios with an ESG focus during an energy crisis.
- An exploration of five different types of responses to the current energy crisis through the lens of Morningstar Indexes.