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

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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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