Home Forums NBS Forum 4 Misconceptions About ESG Investing – insights from Alison Taylor

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    Feel confused about ESG?

    That’s because it’s confusing.

    But expert Alison Taylor helpfully outlines 4 common misconceptions about ESG, and helps set the record straight:

    1. It’s either good or bad. Taylor says there’s false binary about whether ESG investing is a threat to the free markets or the savior of economic environmental and social issues.

      As a concept, Taylor says it’s still not even clearly enough defined to have these conversations. Instead, the focus should be on how it needs to evolve.

    2. All that’s needed for it to “work” is agreeing on the right metrics. Taylor points out that disclosure alone is not equal to change; it requires enforcement and action.
    3. Getting rated on ESG helps businesses become meaningfully more sustainable. Rather, Taylor says that trying to align with so many criteria isn’t realistic, that companies will do better by deeply engaging with a few meaningful issues.
    4. That analyzing ESG performance is a good indicator of risk. Allison argues that if you’ve got issues showing up in your ESG performance, you’re beyond the point of risking damage to financials — in fact, it’s too late to prevent it.

    Instead, she advocates that the best way to understand and mitigate risk from social and environmental issues is to focus on how you impact your stakeholders.

    What do you think gets misrepresented in the hot new #ESG world? How has your understanding evolved? Share your thoughts in this thread!

    Read more: https://www.greenbiz.com/article/sustainable-investing-expert-alison-taylor-esg-misconceptions-and-why-ethics-are-part

    • This discussion was modified 1 week, 3 days ago by  NBS.

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