Distinguished professor of finance at NYU’s Stern School of Business Aswath Damodaran speaks his mind on environmental, social and governance (ESG).
“ESG is built on quicksand,” Damodaran says. “There are services, and advocates of ESG have no idea what they’re measuring, and they keep changing their mind.”
He also explains why ESG is built on a false promise—that one can be virtuous in investing and have good returns.
Damodaran says ESG is going to make society worse off: “You’re spending money on something claiming to accomplish a social objective, and you have nothing to show for it.”
