Ambiguities of ESG investing in AIM
As growing amounts of money move into the ESG space, this article highlights the difficulty in satisfying all the demands of the ESG acronym, with particular reference to smaller companies on AIM.
The move towards ESG investing is showing no sign of slowing with Scottish Widows the latest investment powerhouse to announce plans to divest funds away from companies that fail to meet its criteria. But amid the clamour and the desperate intention for everyone to jump aboard the ESG bandwagon, some inherent ambiguities remain that have yet to be adequately tackled. The acronym itself presents challenges. Environmental, Social and Governance are all important issues for people to be concerned about but they can at times have so little in common that by lumping them together and labelling them up as ESG, risks…