Hedge funds’ disputed ESG strategy gets a thumbs down from MSCI

Corporate newss

THE hedge-fund industry’s claim that short-selling is an effective way to do environmental, social and governance (ESG) investing is questionable on several levels, according to MSCI Inc.

There’s no proof that shorting a company with poor ESG metrics will raise its cost of capital, according to Rumi Mahmood, vice-president of ESG and climate fund research at MSCI.