The End of ESG

Edmans, A (2023) The End of ESG. Financial Management, 52 (1). pp. 3-17. ISSN 0046-3892 OPEN ACCESS

Abstract

ESG is both extremely important and nothing special. It’s extremely important because it’s critical to long-term value, and so any academic or practitioner should take it seriously, not just those with “ESG” in their research interests or job title. Thus, ESG doesn’t need a specialized term, as that implies it’s niche – considering long-term factors isn’t ESG investing; it’s investing. It’s nothing special since it’s no better or worse than other intangible assets that create long-term financial and social returns, such as management quality, corporate culture, and innovative capability. Companies shouldn’t be praised more for improving their ESG performance than these other intangibles; investor engagement on ESG factors shouldn’t be put on a pedestal compared to engagement on other value drivers. We want great companies, not just companies that are great at ESG.

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Item Type: Article
Subject Areas: Finance
Date Deposited: 03 Jan 2023 14:19
Date of first compliant deposit: 15 Dec 2022
Last Modified: 24 May 2024 01:43
URI: https://lbsresearch.london.edu/id/eprint/2749
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