Portfolios Turning Green Does Not Mean the World Turns Green: Fidelity International's Wang Fang Highlights ESG's "Illusion of Causality"

Deep News10-20

At the 2026 Sustainable Global Leaders Conference and the Second Green Industry and Sustainable Consumption Expo, Wang Fang, Global Head of Post-Investment Management at Fidelity International, attended the "Long-Term Capital and Resilient Growth" forum and pointed out a cognitive misconception that is easily confused in sustainable investment.

She stated that there is no natural causal relationship between investment portfolio metrics becoming greener and the changes actually occurring in the real world.

"Portfolio metrics answer the question of what we hold, while impact pathways answer the question of what kind of change our investment activities hope to drive," she said. She believes it is necessary to distinguish between managing financial risk, improving portfolio characteristics, and truly driving the transformation of the real economy 鈥?these two should not be conflated.

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