Every Thanksgiving, Terrence Keeley asks his relatives to review the funds in their retirement accounts and explain why they selected them. All his younger family members tell him they favour funds investing in line with environmental, social and governance (ESG) principles — because they want to do well, and do good. “And it makes me cry because those funds are doing no such thing,” he says. “They are underperforming and doing nothing to make the world a better place.”
Keeley speaks with some authority on this. With four-decades in the financial services industry, including stints at UBS and BlackRock, he is now the author of a book called Sustainable: Moving Beyond ESG to Impact Investing. In it, he argues for a shift away from risk-focused ESG investments and towards investments that drive positive impact. And he is not alone.
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