Skip to main content

Industry expert Jon Hale shares his views on attempts to discredit sustainable investing

Posted on August 14, 2018

Morningstar Sustainalytics
Morningstar Sustainalytics

In a new Medium article highly worth the read, Jon Hale, Global Head, Sustainable Investing Research at Morningstar, writes about recent misleading attacks on the credibility of ESG assessments and sustainable investing. He takes aim at a critical report from The American Council for Capital Formation, a Washington D.C. policy group financed by the National Association of Manufacturers, the fossil fuels industry and various other corporate lobbying organizations.

Jon shares his views on the motivations behind the ACCF’s report and its misinformed conflation of (known) flaws in ESG assessments and the overall validity of sustainable investing. He also counters criticisms of investment managers integrating ESG factors into their investment processes. Jon sets the record straight, pointing out that:

  • Large investment managers are engaging companies on ESG issues because they want to reduce risk and build long-term shareholder value;
  • Investors encouraging companies to look at their broader environmental, social and economic influence can both reduce long-term systemic risks and help create a context in which investments can flourish over the long run;
  • “Main street investors” support sustainable investing and sustainable investors are pressing these issues with companies because it is a path to long-term value creation and a more sustainable world;
  • When Morgan Stanley asked individual investors last year how interested they are in sustainable investing, 75% said they were either somewhat or very interested. And more than 70% agreed that having leading ESG practices can lead a company to higher profitability and make it a better long-term investment.

Read “Attacks on ESG from the Swamp” by Joh Hale.

Recent Content

Incentivizing Change: How ESG-Linked Compensation Can Advance Sustainability Initiatives

Discover how implementing quantifiable ESG targets for compensation incentives can help companies and their investors achieve their sustainability goals.

Navigating the EU Regulation on Deforestation-Free Products (EUDR): 5 Key Questions Answered About Company Readiness and Investor Risk

Navigating the EU Regulation on Deforestation-Free Products: 5 Key EUDR Questions Answered About Company Readiness and Investor Risk

The EUDR comes into effect in December 2024, marking an important step in tackling deforestation. In this article, we answer five key questions who the EUDR applies to, how companies are meeting the requirements, and the risks non-compliance poses to both companies and investors

Child Labor in Cocoa Supply Chains | Morningstar Sustainalytics

Child Labor in Cocoa Supply Chains: Unveiling the Layers of Human Rights Challenges

Child labor remains a persistent issue in the cocoa supply chain. So can major food brands do to stop it? Discover the steps companies can take to address the issue and ways investors can engage with companies to mitigate it.

Beyond 1.5 LCTR Managing Climate Risk | Morningstar Sustainalytics

Beyond 1.5 Degrees: What the LCTR Tells Us About Companies Managing Their Climate Risk

The LCTR rating of over 8,000 companies shows that global temperatures will rise 3.1 degrees Celsius over pre-industrial averages. This article looks at the overall performance of these companies and the industries that are leading on climate.