Why do exclusions in ESG still matter?

How do investors actually align their sustainability preferences with financial decisions? Well, it comes down to approach. Exclusions are one of most straightforward approaches that investors can adopt when investing sustainably. And this in the day and age where ESG sells, it’s not hard to see why managers might be tempted to overpromise and under-deliver the "sustainable" products they’re providing. With the backdrop of this familiar greenwashing problem, the exclusionary approach requires access to good quality ESG data to shape ethical strategies, says Morningstar.