02.15.19
PG&E's Bankruptcy Shows Blindspots in Green Investing
by: Rob Curran
The bankruptcy filing by PG&E is the latest stumble by a company rated highly by environmentally focused investors, further exposing a weakness in a scoring system meant to measure risk for shareholders. The California utility's moves over the past decade to rely more on renewable energy sources resulted in high scores on environmental, social, and governance (ESG) metrics. The Global Sustainable Investment Alliance estimates that between 2014 and 2016, assets invested with ESG and other sustainable-investing goals in mind rose 25 percent to $22.89 trillion. But even as the world's largest asset managers pile into ESG, the ratings and analysis that underpin sustainable investment scores remain more art than a science.
Read the full article on Wall Street Journal