The cost of ethical investing seems to be lower returns in the long run. While companies with high environmental, social, and governance (ESG) scores have relatively high returns today, the increased demand in these stocks is said to yield lower returns once a new equilibrium has been established. Because they trade at a higher price-to-earnings ratio, ESG stocks will have a lower cost of capital, which results in a lower expected return for shareholders — a small price to pay to express their values to the public. Read full article here
Societal Issues
To curb drug deaths, communities turn to Reddit, texts and wastewater
With drug overdose deaths on the rise, authorities are attempting to curb the epidemic by tracking and sharing information in real time. In one unique effort, a nonprofit in New York City is using drug-testing equipment and stamping or marking habits of dealers to identify drug batches that may endanger users. Other approaches are also being used, such as monitoring drug-related chatter on Reddit and analyzing local wastewater for opioid and other drug levels. With the combination of these efforts, researchers hope to put a dent in the opioid crisis and reduce overdose deaths. Read full article here
Merv
June 1, 2023
