Max M. Schanzenbach and Robert H. Sitkoff argue against the recent trend among pensions and endowments to incorporate environmental, social and governance (ESG) factors in their portfolio management (“‘Investing for Good’ Meets the Law,” op-ed, Dec. 10). They base their assertions by applying a fiduciary standard but, as they note, trustees of these funds must “act for the ‘exclusive’ benefit of the beneficiaries, considering ‘solely’ their interests.” What the professors fail to consider are cases where an organization’s operating interests are in direct opposition to an investment alternative.

Source: Wall Street Journal December 16, 2018 16:07 UTC