ESG fever and the challenges of climate-related financial reforms

Investors are proving they have climate change and the energy transition on the their minds.

Last week, activist investors got at least two seats on the ExxonMobil board of directors, and Chevron's shareholders approved Scope 3 emission targets, both which could lead to lower oil and gas production ahead.

The popularity of ESG (environmental, social and governance) investments is soaring. But what does it even mean for a company to adopt that label, and how do we weigh one ESG pledge against another?

Jonathan Chanis, managing member of New Tide Asset Management, believes ESG priorities are here to stay. He thinks regulators have a role to play to make sure these ESG labels mean something but he sees potential risks from regulators getting these reforms wrong.