How low rates are constraining ESG divestment efforts

Asset owners and fund managers are being forced to consider whether divesting the assets of companies that rank poorly for environmental, social and governance (ESG) is a wise idea today, given the combination of low-rates and highly liquid financial conditions. Divestment – or selling the assets of issuers that fall below minimum ESG standards – is seen as a simple strategy to understand and execute. But its effectiveness has been called into question at a time when the instituti…