Russia's invasion of Ukraine has exposed a gap in socially minded investing — a hands-off approach to geopolitics and human rights.
Before Moscow sent troops into Ukraine on Feb. 24, Sberbank, a Kremlin-backed bank already the target of international sanctions, enjoyed higher ratings for environmental, social and governance (ESG) risks than some western lenders.
MSCI and Sustainalytics improved their ESG scores for Russia's largest lender last year as recently as December, citing factors such as improved data privacy. S&P Global also gave Sberbank a positive review late last year.