The imperfect science of ESG investing

More companies are jumping on the ESG bandwagon. But are investors just rewarding good intentions? There’s a lot of buzz about sustainability in the investing world. Blackrock CEO Larry Fink’s annual letter to CEOs always triggers heated debate over whether we can have it all – make the world a better place and still make money. Put the terms “ESG” (environmental, social and governance) and “investing” into an internet search and nearly every major asset manager has a summary of why investing with more than just shareholders in mind is both morally and financially sound. Pharmaceutical companies haven’t been able to tap the ESG investor rush as much as other industries with bigger environmental footprints such as the energy industry. But for years, public health advocates have been saying that a shareholder-first mentality in pharma creates problems. That mindset is the reason why not enough money was invested into infectious diseases like Covid-19. Cheap vaccines and diagnostics...