Environmental, Social, and Governance (ESG) signals have been identified as strong indicators of potential downturns in stock values, making certain stocks attractive targets for short-selling. Conor Platt, CEO of Confluence Analytics, and Rob Yates, OWL ESG's Director of Communications, have delved into this correlation in their recent 3Q23 Short Report. Harnessing data from OWL ESG, Confluence Analytics' Short Model portfolio revealed impressive results, yielding approximately 1500 bps returns year-to-date. The report pinpoints two specific ESG signals - corporate carbon emissions and a ranking in the bottom half of the “Social” category for the US Large Cap universe - as particularly predictive.