When I started thinking about these issues last year, my thinking was pretty similar to what you said.
I thought about it and considered that for the biggest risks, investors may have a selfish incentive to avoid to model and manage the impacts that their companies have on the wider world—if only because the wider world includes the rest of their own portfolio!
It turns out I was not the first to think of this concept, and its name is Universal Ownership. (I’ve described it on the forum here)
Universal Ownership doesn’t go far enough, in my view, but it’s a step forward compared to where we are today, and gives people an incentive to care about social impacts (or social “profits”)
When I started thinking about these issues last year, my thinking was pretty similar to what you said.
I thought about it and considered that for the biggest risks, investors may have a selfish incentive to avoid to model and manage the impacts that their companies have on the wider world—if only because the wider world includes the rest of their own portfolio!
It turns out I was not the first to think of this concept, and its name is Universal Ownership. (I’ve described it on the forum here)
Universal Ownership doesn’t go far enough, in my view, but it’s a step forward compared to where we are today, and gives people an incentive to care about social impacts (or social “profits”)