All the talk from the energy and finance reporters in The Australian sounds like PR for unreliable energy and woke investment decisions in the boardrooms of the nation. Not to mention the talk from industry bodies like the Business Council and the Australian Industry Group and the usual suspects – the ACTU and trend leaders like BHP, Rio, Telstra.
This is in the face of clear signs of concern in the RE industry. Some players have fallen over and others are struggling to get facilities connected to the grid. Look forward to more stranded assets!
So it is not surprising to find a study that casts doubt on the vitality of firms that score high on ESG (environmental, social and governance) indicators.
Looking beyond the initial crash in March, the researchers found that ESG factors were negatively associated with returns during the recovery in the second quarter, while investments in innovation-related assets continued to positively impact performance. “Not only did more socially responsible firms not exhibit the alleged greater share price resilience during the highly unexpected Covid-induced market decline, but they actually performed significantly less well when the overall market recovered,” they wrote.
Including the 2008 financial crisis, the authors determined that liquidity and intangible assets were the best predictors of returns during crisis periods, rather than ESG factors.
Liberty Quote – The state schools deprived working-class parents of the power to withdraw their children from the worst. The private school parents know that their power to move is the source of their influence on their schools. The power of low-income people to withdraw their children from poor schools, in practice or by intention, was taken from them by the state. — Arthur Seldon