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Forward Guidance

ESG: The 40 Trillion Dollar Bubble | Mark Neuman

Aug 25, 2023
01:03:24
Snipd AI
Mark Neuman, Founder & CIO of Constrained Capital, discusses the origins of ESG, measuring ESG investing, underowned stocks within indices, Silicon Valley Bank, incentives and outcomes, ExxonMobil, Tesla, market stress, correlations, portfolio emergencies, the trend of ESG investing, Hero- a vertically integrated farming venture, and exploring the potential and pushback of the ESG movement.
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Podcast summary created with Snipd AI

Quick takeaways

  • ESG investing faces challenges in measuring and quantifying its impact.
  • The lack of standardized ESG ratings and scores leads to confusion and misleading assessments.

Deep dives

Constrained Capital and the Impacts of ESG Constraints

Constrained Capital was created to address the constraints in the market, particularly around ESG. ESG investing emerged from socially responsible investing and has gained prominence over the past decade. However, there are concerns about the misallocation of funds and the lack of quantifiable measurement in ESG. The subjective nature of societal preferences and the lack of overall consensus on what constitutes 'good' make it challenging to rank different ESG factors. There is also the risk of false pretenses and greenwashing, where companies may appear ESG-friendly without making a measurable impact. The discrepancy between theory and quantifiable results raises questions about the effectiveness of ESG investments.

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