ESG: Nipped in the bud?

No sooner had ESG investment taken its first steps, that it was violently taken down by the Russian-Ukrainian war. This is probably what will be written in a few years if nobody comes to the rescue of the young ESG soldier.

Companies, banks, professional and individual investors were slowly beginning to adopt financing measures that promote respect for environmental, social and governance criteria. Major managers were turning away from fossil fuels, away from arms manufacturers, and away from supporting highly polluting fertilizer producers. Then Putin decided to invade Ukraine.

In doing so, he disrupted markets and weakened performance. Investors found a place where the sun still shines: in oil, gas, arms and fertilizers. The end justifies the means, right? In a few weeks, the great principles of ESG have become old news. And so the death knell was sounded (temporarily, we hope) for socially responsible investment.

If you didn't recognize it, this week's drawing is a replica of the "Saving Private Ryan" movie poster.

Drawing by Amandine Victor