Valuation

The Common Tragedy of ESG Not Being G

Gustaf Hakansson
|
November 17, 2021
Individual minorities must demand proper governance as faceless ESG investors stay silent

Disclaimer: This is not investment advice. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. Any reference to or omission of any reference to any company should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. The author may hold positions in securities discussed. Any forward looking-statement is subject to risks and uncertainties. Read further disclosure in the Terms of Service.

ESG isn't always G

The ESG index investor is an oxymoron. Index hugging leads to the tragedy of the commons in governance.

Actual governance comes from active owners. They need enough skin in the game to spend resources on aligning management.

We managed to increase the offer price on a Norwegian company with, conceivably, poor governance. The increased offer from the initial bidder came only days after their first board recommended bid, without any counterbid.

Please see my open letter to NattoPharma shareholders here: https://bit.ly/2NEGBr2

Media attention for any Norwegian speaking friends: article 1, article 2, article 3

Press clipping from first article


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