Mark Carney’s ‘3R’ strategy will make no real difference to the climate transition

The former Bank of England Governor poses a potentially dangerous vision for ESG, explains Nick Silver

One view of ESG is that it captures non-financial risks and hence ensures an improved risk/return profile. However, Carney’s ambition for the 3 Rs – that they contribute to avoiding climate change – represent a marketing view of ESG, that it delivers returns whilst ‘doing good’. Both of these views are flawed, but the latter is more dangerous.