Via Linnea Lueken
Recently Bloomberg article, reported by NewsBusters, shows that the Environmental, Social and Governance (ESG) investment trend that has become ubiquitous in the business world over the past few years is not a profitable bet for investors. investors, nor will any environmental promises be made. Bloomberg analysis shows that the “wake up” ESG movement is a scam.
NewsBusters article, “Bloomberg Columnist Smacks ‘Apostles’ of the Woke ESG Movement“Fee wall description Bloomberg , agreeing with writer Adrian Wooldridge’s views. NewsBusters says that Wooldridge “has ignited the ESG movement and its super-sober cousins, the diversity, equity and inclusion (DEI) movement.”
The two movements “leftist investment giants support such as” BlackRock Inc., State Street Corp. and Vanguard Group Inc. “
The Heartland Institute has also revealing the ESG movement is a strange thing and cynical attempts to monetize green movements and awakenings, lead to the inhibition of the development of fossil fuelswhile providing little or no environmental or social benefit.
ESG mutual funds are targeted portfolios that choose to invest only in companies that meet environmental, social and corporate governance goals that have been established by sober activists and elite fund managers. Instead of investing based on traditional indicators of economic activity, such as profitability, return on investment, long or short term stock performance, loan repayment record, etc., investors investment look at the company’s stated commitment to goals such as net carbon dioxide with zero emissions, union members, gender and sexual diversity in the boardroom, and other distinctly progressive positions. Banks and financial institutions apply ESG scores to companies often unintentionally, and a low score could mean your business has been turned into an investment.
Fearing a loss of cash flow, businesses commit to continuing to go green — even if they don’t deliver the right functionality, relying instead on buy carbon offset. This does not reduce emissions, and it is also only feasible for larger companies.
It is a loss for investors, the public and the environment. In fact, Bloomberg columnist Wooldridge explains, “In fact, “companies in the ESG portfolio violated more labor laws, paid more fines, and had higher carbon emissions than their peers. companies in a non-ESG portfolio sold by the same institution.”
Like Heartland Daily News writer Eileen Griffin revealed, here, ESG portfolios are actually riskier than others, citing a Wall Street Journal report that found the average volatility of funds in the S&P 500 was 15.04%, in when the ESG fund is 15.46%. Half a percent doesn’t sound like much, but when it comes to investing large sums of money, it’s a real consideration. It moves the market as the US Federal Reserve raises or lowers interest rates by half a percentage point, and the extra half a percent of return on overtime investments makes a big difference in retirement fund performance. pensioners’ minds. ESG funds are also more expensive than others, Griffin said, and because there is no global standard to measure their performance, the lack of information makes them a riskier bet.
It is becoming increasingly common for some media sources and public figures to express skepticism towards investing in ESG. Even major US banks and climate-warning-friendly publications like The Wall Street Journal expressed concern that ESG does more harm than good, as indicated by Climate realism posts hereand here.
In addition, many states are also beginning to realize the harmful effects of investing in ESG. States like Texas, Kentucky, Oklahoma, Florida, West Virginia and others, have passed the law of containment the social credit score system is in fact ESG, or has withdrawn their public pension funds from fund managers awaiting ESG duties and investments and fossil fuel divestment. At least 19 other states have proposed similar legislation.
These are positive steps. One can only hope the media like Bloomberg and NewsBusters continue to publicize false equity and environmental claims made by ESG-directed funds and companies, as well as their poor economic performance.
Linnea Lueken is a Research Fellow of the Arthur B. Robinson Center for Climate and Environmental Policy. As a Heartland Institute intern in 2018, she co-authored the Heartland Institute Policy Brief “Drawling Four Persistent Myths of Hydraulic Fracture.”