
March 26, 2022 - Why ESG funds 'shockingly' buy Russian oil instead of Canadian crude
Why ESG funds 'shockingly' buy Russian oil instead of Canadian crude by Jeff Lagerquist
Appeared in Yahoo Finance Canada on March 22, 2022
Gina's Thoughts
This article references a recent study put out by CIBC Capital Markets which performed a global analysis of almost US$2 trillion in ESG fund AUM and found Russian energy holdings within the ESG (Environmental, Social, Governance) universe were held twice as much as Canadian energy. The authors of the study posit that "if ESG investors conclude that a state-controlled Russian company is more attractive from a corporate social responsibility perspective than Canada's largest energy producers, something is lost in translation." Canadian oil and gas companies have some of the highest environmental and governance standards in the world, yet are being passed over as investment opportunities. The "E" in ESG has taken a disproportionate role in investment decisions and it is time to rethink the balance of the three initials in ESG.
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