MSCI CEO: Confusion over oil and gas companies in ESG ETFs is unwarranted

ETFs are striving for balance

Henry Fernandez, CEO of MSCI, has said there has been a fundamental misunderstanding of passive ESG investing and what it is trying to do, in an interview in Glasgow at COP26.

Fernandez said press reports that have shown surprise at ESG  index funds that are invested in oil and gas companies are unwarranted. Last week, there were reports of research from Freetrade which found some ESG funds had money invested in oil and gas, including two ETFs. And at the beginning of the year the Financial Times for instance has reported that 12 ESG funds, including multiple index funds, have exposure to oil and gas groups. "ESG ETFs are indices are trying to balance two concepts," he said. "They are trying to balance ESG commitments with not being too far from market cap ...