Quote:
Originally Posted by Monahammer
Please elaborate on this.
ESG isn't nonsense. It's a risk mitigation tool that has been coopted into some sort of "woke" v "anti-woke" agenda. But realistically it's the idea that if you act a certain way, people are less likely to protest/sue you. This is good if you're a corporation with creditors or insurance.
Do you want your pension funds to be invested in a company with no real governance structure? One that has no limits on nepotism?
What about one who acts contrary to most regulatory practices in an effort to save money at the onset of a project?
What about a company that knowingly pollutes a river system betting that it either won't get caught or that the punishment will not outweigh the benefit?
That's essentially what ESG controls protect investors from. They're not even formalized, it's not a regulatory regime or some bull####. It's created by bankers/ risk auditors who are trying to assess the risk profile of businesses in the current economic/social climate.
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Its an interesting idea that doesn't work well in reality. I'm all for the idea of a more conscientious form of capitalism, but ESG isn't it. It's super corrupted and open to further corruption by politicians and unelected officials. You can read about all the ways on various blogs, FT, WSJ, etc.
Here is one such article:
https://freebeacon.com/latest-news/h...g-esg-ratings/