For those who choose Ethical investments based on ESG ratings, this article is quite enlightening. It points out how some Tobacco companies rate far higher than Tesla because they are more committed to LGBTQ equality and because Tesla doesn't have a diverse boardroom.
It's not really what I imagined the ratings were based on. It's seems too easy for firms to be “Ethical” based on ticking some management boxes rather than what they actually do as a business. Surely it should be on the activity of the business and not to do with whether they fly the pride flag (for example)?
Leave a Reply