There are three brief articles below that address both sides of the issue and a fourth attachment that presents Home Depot's statement on their approach to corporate responsibility from the 2022 Annual Report.

• The Time for ESG Investing is NowDownload The Time for ESG Investing is Now Marotta, Ryan. (June 2021). The Time for ESG Investing is Now. Journal of Financial Planning.
• An Inconvenient Truth About ESG InvestingDownload An Inconvenient Truth About ESG Investing Bhagat, Sanjai. (March 31, 2022). An Inconvenient Truth About ESG Investing. Harvard Business Review.
• The Mechanics of ESG-Driven Divestment, Engagement and Proxy VotingDownload The Mechanics of ESG-Driven Divestment, Engagement and Proxy Voting Campbell, Jordan,. (January 5, 2023). The Mechanics of ESG-Driven Divestment, Engagement and Proxy Voting. Reason Foundation.
• Our Success Starts with Our CultureDownload Our Success Starts with Our Culture Our Success Starts with Our Culture. (2022). The Home Depot, 2022 ESG Report

 

Based on the above references, please answer the following three questions:

1. What do you think are the primary reasons to support the ESG goals even if it may result in lower investment returns?
2. If you are a pension plan sponsor with the fiduciary responsibility of providing your employees with a financially strong retirement, what arguments would you use against ESG investing?
3. Based on questions 1 and 2 above and after reading Home Depot's 2022 ESG Report, what recommendations would you make to the portfolio manager who is investing your savings for future retirement?

Answer rating: 100% (QA)

For the first question 1 Primary reasons to support ESG goals even if it may result in lower investment returns ESG investing aims to create a positiv... View the full answer