Don’t tell Katia Coudray that ESG investment, respecting environmental, social and governance criteria, improves the climate and accelerates the climate transition. The director of Asteria Investment Managers in Geneva won’t believe you. “An ESG portfolio doesn’t necessarily have a positive impact,” she says. She adds that a tiny fraction of sustainable investments provide this advantage.
Impact investing differs greatly from ESG. In sustainability (ESG), the analysis results in a company’s rating in a particular industry without assessing the effect of the economic activity itself on the climate or social dimensions. Oil groups can thus have a negative impact on the climate, but benefit from a good quality ESG score.