5min chapter

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546. Are E.S.G. Investors Actually Helping the Environment?

Freakonomics Radio

CHAPTER

The Importance of Focusing Investment on Green Energy Firms

Most ESG money isn't going to companies that are developing new green technology. A broader group of investors just don't want to associate with brown firms, says Xu. If you push a firm toward financial distress or raise its cost of capital, that firm becomes much more short-term oriented.

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