Green Alpha’s CIO Garvin Jabusch and President Erika Karp outline why we’ve moved beyond ESG frameworks in this new piece published by Impact Entrepreneur.
As public awareness of so-called “ESG investing” grows, a frustrating gap has emerged between its promise and its reality. Regulatory and media attention has rightly raised questions about how well ESG data integrates with real-world sustainability. But the problem runs deeper than flawed metrics — the dominant ESG framework itself has been co-opted and compromised, turning a once-useful tool into a dangerous distraction from the real work of building a sustainable economy.
This isn’t the fault of a single actor, but of a system shaped by asset managers, ratings agencies, consultants, and regulators whose incentives remain tethered to the old economy. The result: ESG has become an exercise in risk optics rather than systemic change.
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