LETTER: Companies have long known the value of ESG
Benjamin Graham was addressing governance issues almost a century ago
Benedict Mongalo’s otherwise helpful summary of the state of play in sustainable investing is only marred by his treatment of corporate governance (“Sustainable investing takes root with shift to greener ethos (https://www.businesslive.co.za/bd/opinion/2020-04-05-sustainable-investing-takes-root-with-shift-to-greener-ethos/)”, April 5). He remarks that investors “have found that investing with environmental, social and governance (ESG) considerations in mind can also produce superior returns”.
Whoever thought improved corporate governance in investee companies wouldn’t produce superior returns? One of Warren Buffett’s favourite people, Benjamin Graham, was already addressing governance issues with Northern Pipeline almost a century ago to increase financial returns to shareholders...
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