A Warning for ESG Investors: Your Data Might Be Letting You Down
- Gore’s fund calls for better ESG data to gauge sustainability
- Information used today often doesn’t present a full picture
Photographer: Guido Kirchner/AFP via Getty Images
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Money managers that have pushed more than $30 trillion into sustainable investments are often basing their decisions on limited and misleading data, according to a new report.
While there’s more environmental, social and governance, or ESG, data available than ever before, most of it’s focused on avoiding risk rather than chasing opportunities, says the report from Generation Investment Management, the $23 billion firm co-founded by former U.S. Vice President Al Gore. The warning for investors: you may not be getting the full picture.