I have written in the past about how green stocks may develop into a bubble and how advisers think that green stocks are worth more than brown stocks. Since then, many renewable energy stocks have made substantial losses as supply chains got disrupted and the cost of raw materials has skyrocketed. As of today, I don’t think green stocks are in a bubble, but they are prone to getting into one again in the future simply because, well, it’s a positive story.
Interesting and confirms my prejudice. Many (I think inc. JK) believe ESG is greenwashing, due to imprecision of how (separately) ES & G are rated; while sometimes the 3 elements are mutually inconsistent. You have the nonsense of Microsoft being in ESG funds, while manufacturers adopting carbon capture etc are punished because they omit CO2 - look at the underlying holdings of most ESG funds.
I believe Money is moving out of ESG funds. It will be a shame if an ESG rating actually deters an investor. I believe Climate Change is real and governments are cynically playing at counter measures. We need that governments influence private capital into counter CC measures.
Interesting and confirms my prejudice. Many (I think inc. JK) believe ESG is greenwashing, due to imprecision of how (separately) ES & G are rated; while sometimes the 3 elements are mutually inconsistent. You have the nonsense of Microsoft being in ESG funds, while manufacturers adopting carbon capture etc are punished because they omit CO2 - look at the underlying holdings of most ESG funds.
I believe Money is moving out of ESG funds. It will be a shame if an ESG rating actually deters an investor. I believe Climate Change is real and governments are cynically playing at counter measures. We need that governments influence private capital into counter CC measures.