Shorting for ESG: Could liquid alternatives be part of the next wave of responsible investments?

Shorting has not traditionally been thought of as a robust way to meet ESG objectives, with popular methods tending towards divesting from companies with poor ESG ratings or engaging with firms through shareholder activism. However, at a time where the urgency of issues such as climate change has never been so front-and-centre for investors and regulators, members of the alternative asset management industry are calling for short selling to be considered another tool to address them, which has generated debate and a degree of controversy in the sustainable investment arena. In an envi...