I think there's a generation of investors coming through for whom this thesis does not hold true - certainly at a retail level and, when those investors hold institutional power, quite possibly at the institutional level as well.
Who says that "investing" should be limited to the search for financial performance and financial returns? An investment, a shareholding in a company, should provide for many positive outcomes and the stock price should reflect the value of those outcomes. ESG goals and behaviours represent valuable outcomes and are something that deserve to be rewarded. (Unless you're so cynical about them that you don't believe concerted efforts on ESG can address the problems we face globally and societally and therefore don't feel that they deserve any compensation.)
I think there's a generation of investors coming through for whom this thesis does not hold true - certainly at a retail level and, when those investors hold institutional power, quite possibly at the institutional level as well.
Who says that "investing" should be limited to the search for financial performance and financial returns? An investment, a shareholding in a company, should provide for many positive outcomes and the stock price should reflect the value of those outcomes. ESG goals and behaviours represent valuable outcomes and are something that deserve to be rewarded. (Unless you're so cynical about them that you don't believe concerted efforts on ESG can address the problems we face globally and societally and therefore don't feel that they deserve any compensation.)