‘Sustainable’ Investing Is a Self-Defeating Strategy

It’s become fashionable for investors to try to do good at the same time as they do well. Investment in so-called ESG funds—those that take account of environmental, social and governance factors—has doubled in 2020 and now totals around $35 billion. Universities and other endowments have been pressured to divest from all stocks associated with fossil fuels. Some investors argue that this kind of investing will achieve a “more inclusive capitalism” and can even enhance investment returns. But how do you know if your investments will have the desired social...