For years people were short on Apple, Amazon, Tesla (still are) and many other companies that still stand tall and strong today.
Independent blogs like Hindenburg Research are among the group of people who are beginning to call out the all of the hype behind ESG investing going on right now.
Investors have poured a little over $22 Billion into ESG exchange-traded funds this year according to Bloomberg. Showing that they hype is definitely there.
With some much money pouring in and now regulation as to how an “ESG” focused fund or company is defined short sellers have reason to believe this is a growing bubble with a bunch of questionable decisions being made.
What Should We Expect
We believe regulation is coming and will be coming fast. Especially after the big meltdown of Nikola just a few months ago, resulting in the founder stepping down from the company.
ESG is hot especially for corporations looking to demonstrate their “environment first” posture to the world. If it has a green or renewable label on it – investors are interested.
Of course when things are gaining hype the way the ESG funds are, naturally people will begin to cut corners and find ways to “justify” that certain companies should be considered in their portfolio…
Expect a potential bloodbath in the space one the SEC begins to investigate.
About The Author
Swarnav S Pujari
Founder of The Impact
Swarnav has over 10 years of experience in the energy & climate tech space, holds 2 patents and is active in the tech, climate and media industries. He specializes in Product/Product Innovation as well as Go-To-Market and Growth Strategy.
By training he’s a Materials Engineer with a background in research from his time at Georgia Tech and University of Illinois (UIUC).
He founded TouchLight a utility backed energy company focused on developing IP for utilities and startups pushing electrification forward. He also serves as the appointed Chairman for the Town of Yorktown’s Climate Smart Communities Task Force, where he helps with drafting legislation and enabling sustainability efforts within the town.
Concurrently, Swarnav founded The Impact to help investors, emerging founders and driven climate enthusiasts discover and identify new climate-tech startups, technologies and opportunities before they hit the traditional media sources.