1. How one investor used ESG principles to avoid being gored by the PG&E bankruptcy

    How one investor used ESG principles to avoid being gored by the PG&E bankruptcy

    Investors may find it hard to overlook the irony that PG&E Corp., a California utility that ranked high on environmental, social and governance investing scorecards, may be the first corporate bankruptcy linked to climate change.

    But one investor, Julie Gorte, senior vice president for sustainable investing at Pax World Funds, said PG&E’s spectacular fall not only underlined the dangers of simply ticking boxes when it comes to the environmental, social and governance, or ESG, investing criteria, it revealed an area of neglect for the popular investment trend: Investors aren’t fully considering the risks around climate-change adaptation ...

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    1. Sustainability is a big topic, and there are many different views of it; it is therefore not surprising that different raters have different views of sustainability.
    2. Investors were able to [claim climate change] as a long-term risk. Most of the sell-side and buy-side equity analysts look at a time horizon of three to five years, they're not going to include this as a concern.
    3. PG&E's woes have brought several ESG risks to the fore. Many are calling PG&E a casualty of climate change.
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