@dmuthuk has been tweeting on SIN STOCKS & ESG (Environmental, Social, Governance) investing. The terms are being conflated.

Thread to give clarity.

Sin stocks have their roots in religion. It& #39;s only negative screening. Eg: Co& #39;s producing alcohol, cigarettes, porn, weapons
1/ https://twitter.com/dmuthuk/status/1248445545636450307">https://twitter.com/dmuthuk/s...

It went on to human rights exclusion.
Eg: avoid companies investing in S. Africa (during apartheid) or those doing business in Sudan (during Dafur genocide).

It went on to environmental exclusion.
Eg: coal company

#ESG
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It is very subjective.
Eg. Currently, many investors will not invest in cannabis stocks due to a mismatch with personal values. After all, the industry is built around a drug with a cloudy net societal benefit at best, after all.

This is NOT #ESG.

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ESG is not about values
ESG is not about negative screening.
ESG is a much more holistic & inclusive investing opportunity. It relies more on positive screening than exclusionary.

Let me give an example of #ESG

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Exxon Mobil, one of the largest integrated energy companies in the world, very involved in fossil fuel related energy sources.
A shareholder resolution asked to produce an annual report on how the company contributes to climate change & how climate change is affecting it.
#ESG
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Shareholders saw climate change as a big financial risk. How can you analyze Exxon if you don’t consider how it& #39;s business model might be impacted by climate change? How the transition away from fossil fuels towards lower carbon intensive energy sources might impact it?
#ESG
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