Global stock market rotation into defensives has slightly dampened ESG equity outperformance, down from +2.0% YTD alpha to +1.3% in June. However, impact investments in sustainable agriculture posted positive spread gains amid commodity price volatility. Now, don’t misunderstand me: I believe this is a very important issue. We should all be working toward decarbonization before it’s too late . And if investors can contribute to achieving that goal with their portfolios, I am all for it. But from where I sit, many of these ESG funds are just a placebo and aren’t helping accomplish this objective. “There’s been a persistent question in the impact investing field concerning how investors should balance their commitment to impact and their commitment to financial returns,” said Michael Brown , head of research at the ESG Initiative and a co-author of the brief. Brown’s co-authors are Wharton management professors Katherine Klein and Tyler Wry . Klein and Wry are also faculty co-directors of the Wharton Impact Investing Research Lab , which is part of the ESG Initiative.