Traditional approaches to ESG will not solve climate change
Kimball Mayer | GMO | 25 August 2021 | 0.25 CE
There are now a plethora of funds that aim to account for environmental, social and governance issues based on different philosophies and processes. Passive screening and divestment approaches are inefficient ways of bringing about real change. To achieve the ultimate end - the preservation of our planet - practitioners should instead use active, fundamental strategies, capable of identifying companies that are helping the world adapt to, or mitigate, climate change. The top-line revenues of such portfolios will handsomely outperform GDP in the years ahead.
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