Does 'ESG' spell 'embellished shiny grading'? - Newton Investment Management

The hyperfocus on sustainable investing is reminiscent of previous bubbles, specifically the dotcom boom and bust.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

Key points:

The rebound from the COVID-19 crisis is set to be the most environmentally friendly economic recovery on record.
Fuelled by abundant liquidity, investors are flocking to back projects in renewable energy, electric vehicles, plant-based food, social inclusion and the circular economy.
Liquidity can be a two-edged sword: money traditionally flows to the best ‘story’, rather than to the problems that are hardest to solve.
We see echoes of the dotcom boom and bust of the late 1990s and early 2000s - too much money potentially chasing too few profitable and enduring business models.

The thing about bubbles: they’re dazzling, they’re enticing … and, ultimately, they burst. Anyone involved in the world of ESG for longer than the last few years will have mixed emotions over the recent surge in interest from investors.

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Does 'ESG' spell 'embellished shiny grading'? - Newton Investment Management

The hyperfocus on sustainable investing is reminiscent of previous bubbles, specifically the dotcom boom and bust.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

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