Steve Sachs: ESG Investing Must Go Beyond Exclusions

As climate change proves to be as much a financial risk as an existential one, investors have begun to flock toward environmental, social, and governance (ESG) ETFs as never before. The definition of what constitutes “ESG,” however, has begun to evolve. Previous iterations of ESG ETFs were primarily exclusionary funds that simply excised the worst-offender stocks. But can active management perhaps provide a better way?