can decide how the customer on the supermarket shelves for organic Meat and Fair Trade coffee, can also do stock market investors with your Investments Good. The purchase of the stock of an oil Company about the environmentally harmful extraction of fossil energy carriers, while the purchase of a share, the group campaigning for human rights and the environment-friendly production, supported more of the Good in the world.
Exactly the kind of so-called ESG Investments are booming in the Corona-crisis. For the US, the analysis of the company’s ETF Flows presented just a statistic, after investors bought in the first six months for 15 billion dollars shares in sustainable ETF-funds. In these the shares of the company are bundled, the more supportive of environmental protection (” E nvironment”), S social and workers ‘ rights (” G overnance”).
investors build in Corona with the crisis in their Portfolios in order to
this year’s Investments are a new record for the ESG funds. Is not limited to the USA only. The asset Manager Blackrock said this week, the sustainable ETFs in its iShares series would be the world’s been bought for 11 billion dollars. In the previous year at the same time, only around 5 billion dollars.
For companies that operate sustainably that is good news. For many years, had been praised for many investors, but the flows of money in appropriate stocks remained. The changes calculated in the Corona of a crisis now, there are two reasons for this:
firstly, the pandemic has led to a rethinking of many investors. Because Corona has shown up the weaknesses of our global economic system, in many Places, want to invest, many investors now prefer to in the companies for climate protection and decent living conditions. This applies not only to small investors: at the beginning of the year, Blackrock CEO Larry Fink had set a route for his company. With Stock Selection in Europe, you will be able to achieve excess Returns with the System. You put on the strongest trend signals from Germany and Europe. Long and Short. So make your investment a success, regardless of the DAX level. (Partner quote) Here is an exclusive free trial!
Second, and have become by the Corona-crisis too many resources. Because the exchanges were previously climbed to record highs, were not afraid to many investors, the costs associated with a restructuring of their portfolio. After they sold their shares in the crisis, however, has provided a great opportunity to own Depot in accordance with new principles back up.
companies with high ESG Ratings are not automatically better
now That more money is flowing into sustainable stocks and funds, is superficially good news. It is but doubtful at a closer look, what is the group for good values in the ESG categories.
So ESG funds waive in the first place on shares from the sectors of energy and industry. This makes sense insofar, as these industries often make use of fossil energies such as coal, natural gas, and Oil, and thus the largest Polluters on the earth. The industry has sought for years: Oil shares such as BP and Exxon Mobil have lost since 2015, around 40 percent of their value. They were also in front of Corona in the negative. BP 3,46 EUR +0,08 (+2,33%) Xetra
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This does not mean, however, on the other hand, shares in ESG funds, or with a high ESG-Rating belong to the Good. The largest shares of black rocks iShares ESG-USA-Fund Apple , Microsoft and Amazon have . The iPhone maker is for years, because of the appalling working conditions in the Chinese factories of its supplier Foxconn in the criticism. Last year, both were accused of multiple labor protection laws in China broken. Among other things, workers were exposed for years to toxic chemicals without protection.
Apple, Microsoft, and companies such as Google’s native Alphabet, and Tesla , which are also found in the iShares ETF, were indicted in December before a court in Washington by Congolese families. The aim is that all groups of children working in the Congolese cobalt-should have benefited the mines, and to draw the corresponding for its accidents, some with deaths, to account be.
How corporations are “green” you can wash
such companies is still good ESG-get Ratings and consequently, in corresponding ETFs popping up on the vague rating system for these categories. Agencies that provide appropriate credit Ratings often rely on self-reporting by the corporations, because there is no General accountability for it. Create like a Pro: With the Bernecker exchange-compass, you depend on the Dax! (Partner offer) Now 30 days free of charge test!
“When things are going well, reports the corporations very happy about it, if it’s not going so well, then it will be eerily quiet,” says Diederik Timmer. He is the managing Director of Sustainalytics, an ESG Rating Agency from the Netherlands to the Reuters news Agency.
“The ‘Greenwashing’ of companies absolutely self-indulgent,” says the Australian hedge-Fund Manager Chad Slater. What is the impact of the Reuters last year: Short-buyer in Germany, the UK, France, Spain and Italy are betting, therefore, more likely to be against stocks with high ESG Ratings, because they think they are overpriced. In addition, their Short positions are 50 percent higher. to solve
this is a Problem, the insistence of EU politicians for some time in a uniform ESG Standards for the valuation of companies. In Germany, for example, the now proposed is to chain the act of Delivery to ensure more transparency.
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