But the main problem with ESG-investing might be that ESG-data is hard to come by. Some of the data is even illegal in some countries:
The collection of racial diversity information is, for example, not legal in many countries in Europe – mainly because of the Holocaust. Other data, like gender pay gaps, companies like Alphabet and Facebook, don’t want to disclose because the data is rather unflattering.
There is, however, a lot of data on diversity being good for companies and your wallet. Last year, PwC, together with Care and Storebrand, analyzed Nordic listed companies and found a connection between the proportion of women in management and financial results in the companies
. Companies with a high proportion of women on boards and top management even had lower volatility and fewer years with negative results. ESG is a field with a lot of data about how good it can be, but currently with a lot of data missing to make it feasible.