Market Views: Should asset owners sell out of poor ESG performers?

Should investors sell out of companies they do not approve of, or try to force them to improve from the inside by remaining invested?  That is the question many asset owners are grappling with, as they commit more explicitly to environmental, social and governance (ESG) standards.  For many investors, the simplest approach is to avoid businesses whose activities they do not approve of. Under this approach, known as negative screening, asset owners refuse to let their money be in…