There’s much more to this: Someone needs to decide on the ESG rating. Usually, these are elaborate sets of rules. The people who decide one these rules have a

There’s much more to this: Someone needs to decide on the ESG rating. Usually, these are elaborate sets of rules. The people who decide one these rules have an advantage of buying/selling affected companies before the rules change. Also, I as an investor might not agree with alle the decisions they make. I don’t see why I should prefer ESG over pure profit-oriented businesses. If a certain behavior would be harmful to society, we should prohibit it by law and not by trying to convince some investors so that other investors make even more profits. Probably, we don’t prohibit certain things because they aren’t that evil. Alcohol can make you really sick and destroy your family. On the other hand, alcohol can fuel a fun party after weeks of stressful work. Weapons can be really bad in the hands of a criminal. Or life-saving in case you need to defend yourself (or your country).