Historically investors have associated ESG investments with reduced performance and assume that increased demand for such assets means paying a premium for them or at least being less fussy about returns.
This is exacerbated by the current macro backdrop. In a fixed income friendly, low-default, low-yield, QE world, there are no real penalties associated with non-ESG status. Borrowing costs might be slightly higher but not enough to result in a business impairment and industries such as coal and oil are still required in the energy complex even if their future potential is increasingly capped.
Read the full whitepaper now at the link below
