Aswath Damodaran: Impact investing – Good intentions, perverse results

There are almost no limits to the range of funds and companies that promote impact and ESG investing. But what exactly is the outcome of all the many billions that are flowing towards green and sustainable investments?

That’s the question NYU professor Aswath Damodaran tries to answer in his article (spoiler alert: The answer isn’t exactly uplifting).

I think it is time that impact investors face the truth. After 15 years, and trillions invested in its name, impact investing, as practiced now, has made little progress on the social and environmental problems that it purports to solve. Is it not time to try something different?

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