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Asked on
January 2, 2023
in
Investing
Q:
Are companies with specific ESG goals a better long-term investment than companies without ESG goals?

I am worried about foreseen and unforeseen consequences that may come from investing in ESG since the phenomenon has only gained significant notoriety within the past 5 years. Does anyone knowledgeable have any insight as to what potential hurdles would be?

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Are companies with specific ESG goals a better long-term investment than companies without ESG goals?
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Wealth Manager Answer(s)

There’s evidence that companies may publicly embrace ESG as a way of diverting attention away from poor business performance. Research has shown that when a firm underperformed earnings expectations, it often publicly talked about its focus on ESG. But when they exceeded expectations, they made few, if any, public ESG remarks.

December 28, 2022
Martin A. Smith
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