The Financial Problems with Current ESG
There are no standard rules for the International marketplace.
“An ESG Focused fund is one for which ESG criteria are central to the strategy and figure into investment decisions and/or engagement and proxy voting decisions. Most funds that we think of today as ESG or “sustainable” funds belong in this group.
Such funds would be required to say what approaches or combination of approaches they use in an “ESG Strategy Overview” table in their Summary Prospectus. Funds would have to state which of the following approaches are included in their strategy:
Tracks an index
Applies an exclusionary screen
Applies an inclusionary screen
Seeks to achieve a specific impact
Proxy voting
Engagement with issuers
Other”
https://medium.com/the-esg-advisor/sec-proposes-new-rules-for-sustainable-funds-aimed-at-standardizing-esg-disclosures-313ded5cc69c