ESG Investing Needs More Rigorous Standards To Evaluate Corporate Conduct

Michael Posner of NYU writes that over the last 15 years, ESG investing has grown rapidly, focused primarily on climate change, but notes that this gives insufficient attention to the “S” in “ESG.” He cites the example of Tesla as popular with investors for its “responsible capitalism,” despite the company's heavy reliance on batteries based on cobalt mined in the Democratic Republic of Congo, a country accused of exploiting child labor and unsafe working conditions.