Standards for Financial ESG Products Too Lax

Since the financial industry committed itself to the U. N’s sustainable management and 2015 Paris Accord’s climate-change goals, we as consumers see press releases almost every day announcing the launch of a new ESG or impact product or a financial services company’s net-zero strategy. In other words, investment products with an ESG label or with a climate-change target may comply with sustainability guidelines, but do not have a measurable impact. There is no doubt that serious efforts are being made in the financial sector to put the global economy onto a more sustainable footing and to slash CO2 emissions. However, a company’s ESG the score is the result of variously weighted ESG factors. As a result, oil companies such as ExxonMobil or the tobacco multinational Philipp Morris or Coca Cola or Pepsi, whose products cause immense damage to health, achieve decent ESG scores. Read more

ESG Chronicle Team