Investor argues ESG investing is about measuring risk, not politics

John Streur, chairman of Calvert Research and Management in Washington, D.C., has been doing ESG investing for decades.

Just outside his office, a new D.C. Metrobus pulls away. The D.C. Metrobus system has a fleet with newer engines from the Cummins company, and Cummins has a high ESG score.

“Cummins has consistently innovated on fuel efficiency, and Cummins is also a leader in helping to develop hydrogen fuel technology,” Streur says. “Green hydrogen is a potential fuel of the future.”

The idea is to bet on companies Calvert Research and Management thinks will be around long-term. And to bet against many fossil fuel companies that Streur thinks could be endangered.

“Oil, when burned, creates carbon emissions, which are held to be responsible for warming and climate change,” he says. “Therefore, there are lots of innovators, lots of initiatives to try to create a different energy system.”

Think back to a few 100 years ago: If thought energy only comes from burning wood, then they would have missed out on coal and then oil.