Vice Is a Hard Habit to Kick as ESG Seeps Into Credit Markets
- Tobacco, fossil fuel, gaming firms have easy access to credit
- Rewards for investors sticking to ESG criteria remain modest
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Virtue in corporate environmental, social and governance debt is becoming lucrative for investors and companies alike, but vice still has its rewards in the hunt for yield.
Investors say companies in sectors that many ESG funds would exclude, such as tobacco, fossil fuel and gaming companies, can still access credit markets with relative ease, and sometimes even lower their funding costs.