The FTSE 100 under scrutiny for high ESG risk ratings, investors evaluate London Stock Exchange

From Morningstar: 2024-06-18 04:42:00

The FTSE 100 faces scrutiny over ESG concerns, Morningstar’s Sustainalytics measures corporate ESG risk scores. More than half of the index has a medium to high ESG risk rating, with Glencore leading in controversy. UK investors explore the risks of the London Stock Exchange compared to US and European markets.

Investors examine ESG data to make informed decisions, ESG investing allows portfolios to align with values. Governance scores from Sustainalytics highlight portfolio risk for companies like Glencore, BP, Rio Tinto, and Shell. UK equity fund managers navigate challenges of including fossil fuel companies in their portfolios.

ESG funds face outflows as performance lags in high interest rate environment. Some funds outperform, like Amundi MSCI Semiconductors ESG Screened UCITS ETF. Robeco Smart Energy is a top performing active fund. Investors look to ESG data for transparency and values-based investing.



Read more at Morningstar: Is The FTSE 100 Anti-ESG?