Critically Evaluating "Sustainable" Investments
I caught the WSJ headline and hoped it would be talking about the dubious nature of many "green investments." Many are not particularly "green" and others are absolutely stupid business models. Funds normally have little expertise is judging either. If they hire expert support, it is often just some "woke" yuppies will no critical skill set or experience. The financial studies that praise the economic value in "sustainable investment" fail to sort out the noise. Large, well-run companies find it necessary for the PR to claim "sustainable" policies. Most of this stuff is "green wash" which is the short-hand for saying environmental spin. This is harmless enough on its own. Although experts have struggled for years to show that the even adoption of actual environmental management systems (i.e. ISO) has a positive correlation with actual environmental performance of a company. Any occasional modest correlation c...