Goldman stock model tests ESG assumptions


More attention: A worker dries plastic chips for recycling in Dhaka. Goldman’s filter is designed to favour companies that recycle, manage waste and re-use materials. — AFP

New York: At Goldman Sachs Group Inc there’s an environmental, social and governance (ESG) filter that tells investors to buy coal giant Glencore Plc, and avoid Big Tech staples Microsoft Corp and Alphabet Inc.

The filter is designed to pick stocks based on how much attention companies pay to recycling, waste management and the re-use of materials and products. The better they do, the higher they score on a metric called circularity.

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