Aggregating Values: Mutual Funds and the Problem of ESG

Profs. Adriana Z. Robertson and Sarath Sanga argue "that an ESG fund must establish a consistent link among the fund’s stated ESG purpose, its ESG investing strategy, and—crucially—the portfolio-level ESG metric." Then, the authors "propose a practical approach to constructing portfolio-level ESG metrics and explain how, in light of [that] analysis, ESG fund managers and the SEC should act."