Donald MacDonald
2 comments By Donald MacDonald
Many conventional US academics have always had problems with ESG integration. Partly, they just don't understand it and often think of it as "philanthropy", and, partly, they know who pays the piper.
They have employed "straw man" arguments. They should read the 2005 UNEPFI/Freshfields report https://www.unepfi.org/fileadmin/documents/freshfields_legal_resp_20051123.pdf for a better understanding:
"Rather, in our opinion, it may be a breach of fiduciary duties to fail to take account of ESG considerations that are relevant and to give them appropriate weight, bearing in mind that some important economic analysts and leading financial institutions are satisfied that a strong link between good ESG performance and good financial performance exists."Integrated energy policies, or at least significant movement in that direction, and greater interconnection, will improve efficiency of the market and bring renewables closer to grid parity. With the right policy framework, Europe can significantly improve its energy security.
Commented on: 26 July 2019
US academics challenge whether ESG investing must be fiduciary duty