Rational Sustainability

Alex Edmans

2024 | Academic | ESG Ratings, Sustainable Investing

This article proposes an alternative: “Rational Sustainability”. It seeks sustainability – the creation of long-term value – which is of interest to all job titles and political leanings; it does not limit the value creation tools to those with an ESG label. It is rational since it recognizes diminishing returns and trade-offs; it is based on evidence and analysis; and guards against irrational sustainability bubbles.