Asset Management

Adani saga exposes shortcomings of ESG ratings

More than 200 sustainable funds – many of them index funds and ETFs – have been caught out by the Adani drama, according to data from Morningstar

Gautam Adani's conglomerate should not have scored so highly on ESG, according to sector experts
Gautam Adani's conglomerate should not have scored so highly on ESG, according to sector experts Photo: Getty Images

Gautam Adani’s business empire was regarded as an ESG darling before it was accused of accounting fraud and stock manipulation by short-seller Hindenburg Research.

Adani Enterprises, the Indian billionaire's flagship company, features in a number of major green indices, including the S&P Dow Jones Sustainability Emerging Markets Index. Others including Adani Total Gas have consistently bagged high ESG ratings.

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