{"id":23922,"date":"2022-12-01T17:47:52","date_gmt":"2022-12-02T01:47:52","guid":{"rendered":"https:\/\/genuscap.com\/?p=23922"},"modified":"2026-03-17T13:38:18","modified_gmt":"2026-03-17T20:38:18","slug":"esg-investing-hype-or-reality","status":"publish","type":"post","link":"https:\/\/genuscap.com\/fr\/esg-investing-hype-or-reality\/","title":{"rendered":"Investissement ESG : Effervescence ou r\u00e9alit\u00e9 ?"},"content":{"rendered":"\t\t
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If you\u2019ve turned on the business channels or flipped through the financial papers recently, you\u2019ve probably seen a lot of <\/span>less-than-glowing coverage of ESG<\/span><\/a> \u2013 Environmental, Social, and Governance \u2013 factors that investors are increasingly considering when building their investment portfolios.<\/span><\/p>

The headlines, simply put, are<\/span> questioning whether ESG investing delivers good returns<\/span><\/a> \u2014 or even<\/span> makes a difference<\/span><\/a> in building a better world. In a year in which most portfolios have taken a hit \u2014 and one of environmental and geopolitical turmoil \u2014 it\u2019s a seemingly easy case to make. The true story, however, is much more complicated.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The challenge of defining ESG investing\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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ESG investing<\/span><\/a>, a concept that has been around<\/span> for over 50 years<\/span><\/a>, has many different definitions or approaches \u2014 which is a key challenge in trying to compare apples to apples. As a<\/span> recent Bloomberg article<\/span><\/a> put it: \u201cEach ESG rating provider uses its own proprietary system, algorithms, metrics, definitions, and sources of nonfinancial information, most of which aren\u2019t transparent and rely heavily on self-reporting by the companies they rate.\u201d<\/span><\/p>

And into this void, the practices of greenwashing, as well as <\/span>impact washing<\/span><\/a>, where investments are spun as environmentally and socially positive without mentioning the serious downsides \u2014 has mushroomed. A startling example is China\u2019s Three Gorges Dam, which has issued<\/span> over $840 million<\/span><\/a> in \u201cgreen\u201d bonds for wind-power projects,<\/span> despite flooding<\/span><\/a> 13 cities and 140 towns, and relocating 1.2 million people. Similar uncertainty surrounds how some companies measure Social and Governance metrics.<\/span><\/p>

According to Shannon Ward, Genus\u2019 Chief Revenue Officer, ESG investing has, in many ways, become a victim of its own success. \u201cFor much of the past 30 years, we had to work hard to get people to listen and understand and care about this stuff,\u201d says Ward, of the fact that Genus first started in the ESG space back in 1992, when few others were engaged. \u201cA few years ago, a switch flipped \u2014 and now we have a bandwagon,\u201d she adds. \u201cPeople <\/span>are<\/span><\/i> listening, but there are <\/span>so many<\/span><\/i> voices now that it\u2019s hard to know who\u2019s greenwashing and who\u2019s real.\u201d<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How to get clarity on your ESG investments<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Ward says the only real way to separate the wheat from the chafe is to talk to an investment professional and ask them how they create their funds. \u201cHow do they choose the companies they\u2019re investing in? How do they measure?\u201d she asks. \u201cBecause there\u2019s all sorts of different measurements right now, so you have to figure out whether your asset manager is measuring in a way that\u2019s transparent\u2014 where you feel like you have enough insight into whether your capital is having the effect you want in the world.\u201d<\/span><\/p>

As<\/span> a signatory to the United Nations Principles for Responsible Investing<\/span><\/a>, Genus takes ESG issues into account across all of its investments, but each fund uses different metrics.\u00a0<\/span><\/p>

For those interested in taking their sustainability commitment to the next level, Genus also offers fossil-free funds that specifically <\/span>exclude<\/span><\/i> companies in fossil fuel intensive sectors \u2014 as well<\/span> as impact funds<\/span><\/a> focused on companies actively making positive change in the world. \u201cThe impact funds are not just about eliminating <\/span>negative<\/span><\/i> factors,\u201d says Ward. \u201cThey\u2019re also about really promoting <\/span>positive<\/span><\/i> factors. It\u2019s an additional layer of impact.\u201d<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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ESG is about our collective future <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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ESG ratings and ESG-filtered funds<\/span> won\u2019t save the world<\/span><\/a>, but they do offer a way to measure how seriously a company is taking<\/span> social and environmental issues \u2013 and their potential impact on shareholders. <\/span>\u201cThis is about progress,\u201d says Ward. \u201cIt\u2019s not about perfection. That\u2019s why we offer a wide range of products \u2014 because we feel like there\u2019s a spectrum of impact here. And where a person falls on that <\/span>impact investing spectrum<\/span><\/a> depends on many factors, including risk tolerance and investment timeline. This is about people\u2019s <\/span>future<\/span><\/i>.\u201d<\/span><\/p>

As for what the future of ESG looks like, it\u2019s likely that, after a tumultuous few years, greater transparency and standardization will be the outcome.<\/span> Earlier this year, Canada\u2019s accounting and auditing bodies<\/span><\/a> made the decision to establish a standards board for sustainability measures \u2014 a response to investor concerns about ESG confusion and greenwashing.\u00a0<\/span><\/p>

And there\u2019s little doubt that sustainable investing, in whatever form, is a long-term winner:<\/span> according to research<\/span><\/a> from George Serafeim of Harvard Business School, sustainable companies carry a 300-basis-point equity-valuation premium over non-sustainable companies.<\/span><\/p>

The key thing for ESG investors to remember is to look past current market turmoil and focus on the big picture of sustainable investing. \u201cWe\u2019ve seen these ups and downs before,\u201d says Ward. \u201cWe\u2019re telling investors the same thing we would tell them in any market environment: There needs to be a long-term outlook. Yes, this is a little bit of a perfect storm \u2014 but two years ago, everything was fantastic for ESG. The role of an asset manager or portfolio manager is to help you keep that vision on the long road ahead.\u201d<\/span><\/p>

Interested in exploring what ESG investing could look like for you? <\/span><\/i>Contact a Genus advisor<\/span><\/i><\/a> to get started.<\/span><\/i><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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[1]<\/sup> \u00a0Lindzon, J. (2022) <\/span>Why companies struggle to make ESG commitments a Reality<\/span><\/i>, <\/span>The Globe and Mail<\/span><\/i>. The Globe and Mail. Available at: https:\/\/www.theglobeandmail.com\/business\/article-why-companies-struggle-to-make-esg-commitments-a-reality\/ (Accessed: November 24, 2022). <\/span><\/p>

[2]<\/sup> Foster, P. (2022) <\/span>Opinion | why we’re bullish on energy stocks<\/span><\/i>, <\/span>The Wall Street Journal<\/span><\/i>. Dow Jones & Company. Available at: https:\/\/www.wsj.com\/articles\/bullish-energy-stocks-esg-strive-asset-inflation-oil-gas-drilling-opec-technology-interest-rates-risk-underinvestment-warren-buffett-11666611839?st=0jixlhi7epz5cqr&reflink=desktopwebshare_permalink (Accessed: November 24, 2022).<\/span><\/p>

[3]<\/sup> The evolution of ESG investing<\/span><\/i> (no date) <\/span>MSCI<\/span><\/i>. Available at: https:\/\/www.msci.com\/esg-101-what-is-esg\/evolution-of-esg-investing#:~:text=The%20practice%20of%20ESG%20investing,the%20South%20African%20apartheid%20regime. (Accessed: November 24, 2022).<\/span><\/p>

[4]<\/sup> \u00a0Simpson, C., Rathi, A. and Kishan, S. (2021) <\/span>What is ESG investing? MSCI ratings focus on Corporate Bottom Line<\/span><\/i>, <\/span>Bloomberg.com<\/span><\/i>. Bloomberg. Available at: https:\/\/www.bloomberg.com\/graphics\/2021-what-is-esg-investing-msci-ratings-focus-on-corporate-bottom-line\/?sref=gKSeqgQQ (Accessed: November 24, 2022).<\/span><\/p>

[5]<\/sup> Matsuzaki, Y. (2018) <\/span>Environmental bonds stained by ‘green washing’<\/span><\/i>, <\/span>Nikkei Asia<\/span><\/i>. Nikkei Asia. Available at: https:\/\/asia.nikkei.com\/Business\/Markets\/Capital-Markets\/Environmental-bonds-stained-by-green-washing (Accessed: November 25, 2022).<\/span><\/p>

[6]<\/sup> Robinson-Tillett, S. (2019) <\/span>Green bond round-up, June 20: Three gorges, Apple and Gbps Top Bumper Week<\/span><\/i>, <\/span>Responsible Investor<\/span><\/i>. Available at: https:\/\/www.responsible-investor.com\/green-bond-round-up-june-20-three-gorges-apple-and-green-bond-principles-to\/ (Accessed: November 25, 2022).<\/span><\/p>

[7]<\/sup> ESG investing<\/span><\/i> (2022) <\/span>Genus<\/span><\/i>. Available at: https:\/\/genuscap.com\/fossil-free-impact\/what-is-esg-investing\/ (Accessed: November 25, 2022).<\/span><\/p>

[8]<\/sup> ESG investing isn’t designed to save the planet<\/span><\/i> (2022) <\/span>Harvard Business Review<\/span><\/i>. Available at: https:\/\/hbr.org\/2022\/08\/esg-investing-isnt-designed-to-save-the-planet (Accessed: November 25, 2022).<\/span><\/p>

[9]<\/sup> Phung, E. (2022) <\/span>Where am I on the impact investing spectrum?<\/span><\/i>, <\/span>Genus<\/span><\/i>. Available at: https:\/\/genuscap.com\/where-am-i-on-the-impact-investing-spectrum\/ (Accessed: November 25, 2022).<\/span><\/p>

[10]<\/sup> Jones, J. (2022) <\/span>Canadian Standards Board created to oversee ESG reporting amid global calls for better transparency<\/span><\/i>, <\/span>The Globe and Mail<\/span><\/i>. The Globe and Mail. Available at: https:\/\/www.theglobeandmail.com\/business\/article-esg-reporting-companies-canadian-sustainability-standards-board\/ (Accessed: November 25, 2022).<\/span><\/p>

[11]<\/sup>\u00a0Press, R.B.A. (2022) <\/span>Opinion | why ESG Funds Fail, and how they could succeed<\/span><\/i>, <\/span>The Wall Street Journal<\/span><\/i>. Dow Jones & Company. Available at: https:\/\/www.wsj.com\/articles\/why-esg-funds-fail-and-how-they-could-succeed-impact-investing-financial-value-divest-dei-emissions-brown-green-11666038061?st=mhg4e6o8wg90bt2&reflink=desktopwebshare_permalink (Accessed: November 25, 2022).<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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L'investissement ESG, un concept qui existe depuis plus de 50 ans, fait l'objet de nombreuses d\u00e9finitions ou approches diff\u00e9rentes, ce qui constitue un d\u00e9fi majeur lorsqu'il s'agit de comparer des pommes avec des pommes.<\/p>","protected":false},"author":6,"featured_media":23923,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[16,21],"tags":[110],"class_list":["post-23922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-fossil-free","tag-blog"],"acf":[],"yoast_head":"\nESG Investing: Hype or Reality? - Genus Capital<\/title>\n<meta name=\"description\" content=\"ESG investing has many different definitions or approaches \u2014 which is a key challenge in trying to compare apples to apples.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/genuscap.com\/fr\/esg-investing-hype-or-reality\/\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ESG Investing: Hype or Reality?\" \/>\n<meta property=\"og:description\" content=\"ESG investing, a concept that has been around for over 50 years, has many different definitions or approaches \u2014 which is a key challenge in trying to compare apples to apples.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/genuscap.com\/fr\/esg-investing-hype-or-reality\/\" \/>\n<meta property=\"og:site_name\" content=\"Genus\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/GenusCap\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-02T01:47:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-17T20:38:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/genuscap.com\/wp-content\/uploads\/2022\/12\/GENUS-November-ESG-Hype-or-Reality-Blog-Feature-Image-1024x576.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Genus Marketing\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GenusCapMgt\" \/>\n<meta name=\"twitter:site\" content=\"@GenusCapMgt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Genus Marketing\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Investissement ESG : Effervescence ou r\u00e9alit\u00e9 ? 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