The Real Cause of ESG’s Big Crash: Republican governments across America have passed anti-ESG bills, but that’s not why the investment principle has fallen out of favor.
by thenewrepublic
The Real Cause of ESG’s Big Crash: Republican governments across America have passed anti-ESG bills, but that’s not why the investment principle has fallen out of favor.
by thenewrepublic
7 comments
The stampede to ESG in 2020 and 2021 reflected Big Oil’s big decline. Then Vladimir Putin invaded Ukraine and everything changed.
The real downfall of ESG is common sense. Efficiency in the markets and investing principles won’t be forsaken for feel good points.
I find ESG to be interesting. I’ve owned a number of funds that rebranded as ESG in the last few years, but I bought them well before that. It’s always been a “here’s risks to business and I want companies that recognize those risks/have some sort of plan for mitigating those risks. Things like good corporate governance and transparency tend to be a win. Having plans to mitigate rising energy costs is a win.
Most of those funds haven’t crashed and burned on a longer run scale, but they are off of their 2022 peaks. Then again – lots of the market is off the peak.
Yeah … the big losers in the long run will be all of us.
The biggest companies that pushed ESG were also the largest investors in oil, 3rd world dictatorships that profit off oil, and about everything else thats not considered good publicity
It was never anything other than a “don’t look behind the curtain” ploy
If Demcame out and made ice cream their official dessert, almost immediately Republicans would be out to ban it, and their base would be throwing out all they have just because they wouldn’t want to link with that.
>ESG stands for environmental, social, and governance, and investors who follow its do-gooder guidelines have become a culture-war target. “Elites are circumventing the ballot box to implement a radical ideological agenda,” Governor Ron DeSantis, the nation’s preeminent culture-war blowhard, complained in February when he introduced an anti-ESG bill in Florida. The measure, which barred the state and local governments from considering ESG when making investment decisions or choosing contractors, became law in May. Nationwide, similar bills were introduced this year in 37 states and became law in about 20.
So everyone loves corporations and the rich, only when they pander?