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‘ESG’ has lost its way – let’s make it useful again

Time investors and regulators tweaked their approach to environmental, social and governance issues, which have become vague and open to interpretation

‘ESG’ has lost its way – let’s make it useful again

I’m worried about ESG.

At a time when investing with a long-term horizon is rightly popular, and the effective analysis and management of investment risk has seldom been more important, the call for asset owners to incorporate environmental, social and governance factors into investment decisions is understandable. But there’s also potential for significant misunderstanding.

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