ESG – environmental, social and governance – is one of the hottest trends in the investing world, but some investors are calling it a gimmick.
ESG is a new industry of funds launched by companies like BlackRock, Vanguard and Fidelity that are invested in companies that meet certain criteria. These ideals pertain to standards of diversity, equity and inclusion, pollution and carbon emissions, and data security, among others.
But attacks on ESGs have come from all over. New York City Comptroller Brad Lander recently sent a letter to BlackRock CEO Larry Fink demanding the company bolster its climate disclosures and publish a plan to establish a commitment to net-zero greenhouse gas emissions across its portfolio.
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