The Complexities of ESG Investing

This chapter explores the strategies and implications of Environmental, Social, and Governance (ESG) investing, particularly focusing on the categorization of companies based on their environmental impact. It examines the effectiveness of divesting from 'brown firms' and highlights the challenges and nuances in promoting sustainable practices without harming essential industries. The discussion also delves into the psychological facets of investor behavior and the broader consequences of pushing harmful firms toward bankruptcy.