Both the level of interest and scrutiny on environmental, social and governance (ESG) investing has arguably never been higher. This is to be welcomed. The power of finance, if directed correctly, could be immense. But this means going beyond impact investing to ensure the entire financial system cleans up its act. Numerous blind spots, loopholes and inconsistencies exist.
Alex Edmans is an industry insider turned observer having decided to switch from a career in investment banking to one in academia. He now focuses his attention on corporate governance, responsible business, and behavioural finance.
Edmans’ findings are often provocative and non-intuitive. Data-led and wary of anecdotal stories, a few recent examples of research findings he has either contributed to or helped promote include the surprising amount of green patents produced by fossil-fuel companies, the role of share buybacks in creating value and the lack of evidence for diversity enhancing corporate performance.
