ESG and indexation is not a binary debate, the same as active versus passive is not a binary debate, said Carlo Funk, EMEA head of ESG investment strategy at State Street Global Advisors.
Speaking at the Sustainable Investment Festival yesterday (11 July), Funk said dismissing ESG considerations for core index exposures is "totally missing the point", adding that ESG definitely still has a place for indexing. However, he noted that it does not "make intuitive sense" to apply an ESG narrative to a passive investment solution in the same way as you would do to a bottom-up stock picking solution. "If there is one particular narrative around ESG and saving the world, it is trying to apply it to everything that you do. But it is a little bit more complex than this. That s...
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