Kelly Shue argues that investors who focus on the E.S.G. rating of a company or an investment fund are making a fundamental mistake. This episode she joins Bryce and Ren to talk about this counterproductive impact. Kelly Shue challenges the common belief that E.S.G. (Environmental, Social, and Governance) investing makes the world greener. She argues that the math behind this concept doesn't add up and that the approach may not be as effective as many believe.

As Professor of Finance, at Yale School of Management, Professor Shue's academic interests lie at the intersection of behavioural economics and empirical corporate finance. Her research has explored the Peter Principle, compensation and promotions, gender and negotiations, the gambler's fallacy, contrast effects and non-proportional thinking in asset pricing, and executive social networks. Her co-author on this paper was Samuel Hartsmark.

To read Counterproductive Sustainable Investing, click here. Want more Equity Mates? Click here.

Also, big announcement from us – we’ve a new book! Don’t Stress, Just Invest, is out now at all bookshops and you can order it from Amazon or Booktopia.

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Is ESG investing counterproductive? | Professor Kelly Shue from Yale School of Management

Equity Mates Investing Podcast

Is ESG investing counterproductive? | Professor Kelly Shue from Yale School of Management