﻿{"id":3257,"date":"2020-07-08T22:45:48","date_gmt":"2020-07-08T21:45:48","guid":{"rendered":"https:\/\/www.graphene-investments.com\/?p=3257\/"},"modified":"2020-07-08T22:59:15","modified_gmt":"2020-07-08T21:59:15","slug":"no-esg-is-not-a-wonderful-opportunity-for-asset-managers","status":"publish","type":"post","link":"https:\/\/www.graphene-investments.com\/en\/no-esg-is-not-a-wonderful-opportunity-for-asset-managers\/","title":{"rendered":"No, ESG is not a &#8220;wonderful opportunity&#8221; for asset managers"},"content":{"rendered":"<p><strong>The CEO of a large asset manager in Europe recently said that ESG investment was a \u201cwonderful growth opportunity for our industry\u201d.<\/strong><\/p>\n<p>Since I read the interview, I keep thinking about it, and wondering whether I missed something, because I can\u2019t reconcile this statement with my own understanding of the business:<\/p>\n<ul>\n<li>Does ESG expand our Total Addressable Market? No, since the investor base is the same.<\/li>\n<li>Does ESG expand our revenue? No, since the fees we charge for a standard product are the same, whether standard is ESG (as is becoming the case) or not (as was the case in the past).<\/li>\n<li>Does ESG reduce our cost base? No, since it even makes us subject to additional research and reporting obligations.<\/li>\n<li>Does ESG give ESG managers a competitive advantage? No, since everyone is moving in the same direction.<\/li>\n<\/ul>\n<p>So what are the facts? ESG investing\u00a0certainly has the potential to be a good thing for mankind in the long-term. For this to be the case, however, research and standards will need to be developed according to an honest, well-informed approach, rather than the basic clich\u00e9s which often prevail at the moment, and many of which do not resist a careful analysis.<\/p>\n<p><strong>Aside from that, no, ESG investing is not a wonderful opportunity for asset managers (unless they have an interest in making comparisons impossible with their benchmark or peer group). It is, though, for consultants, index compilers, rating agencies and the rest of the ecosystem, who therefore keep pushi<\/strong><strong>ng it tirelessly.<\/strong><\/p>\n<p style=\"text-align: right;\"><em>Hubert Goy\u00e9 &#8211; July 8, 2020<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CEO of a large asset manager in Europe recently said that ESG investment was a \u201cwonderful growth opportunity for our industry\u201d. Since I read the interview, I keep thinking about it, and wondering whether I missed something, because I can\u2019t reconcile this statement with my own understanding of the business: Does ESG expand our [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[103],"tags":[],"class_list":["post-3257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-think_different"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>No, ESG is not a &quot;wonderful opportunity&quot; for asset managers - Graphene Investments<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No, ESG is not a &quot;wonderful opportunity&quot; for asset managers - Graphene Investments\" \/>\n<meta property=\"og:description\" content=\"The CEO of a large asset manager in Europe recently said that ESG investment was a \u201cwonderful growth opportunity for our industry\u201d. Since I read the interview, I keep thinking about it, and wondering whether I missed something, because I can\u2019t reconcile this statement with my own understanding of the business: Does ESG expand our [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.graphene-investments.com\/en\/no-esg-is-not-a-wonderful-opportunity-for-asset-managers\/\" \/>\n<meta property=\"og:site_name\" content=\"Graphene Investments\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-08T21:45:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-08T21:59:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.graphene-investments.com\/wp-content\/uploads\/HibouAlEnvers-blog.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Graphene Investments\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.graphene-investments.com\/en\/no-esg-is-not-a-wonderful-opportunity-for-asset-managers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.graphene-investments.com\/en\/no-esg-is-not-a-wonderful-opportunity-for-asset-managers\/\"},\"author\":{\"name\":\"Graphene Investments\",\"@id\":\"https:\/\/www.graphene-investments.com\/en\/#\/schema\/person\/fe86f0e80ddc1966ed69939965f1ebf8\"},\"headline\":\"No, ESG is not a &#8220;wonderful opportunity&#8221; 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