Why Companies Are Ditching ESG
“Sustainability” investments became popular a few years back.
So-called experts said companies shouldn’t just focus on profit. They should put more effort into being “nice.”
Funds pushing ESG (environmental, social, and governance) were all the rage.
Giant investment firms like BlackRock pressured companies to hire more women and minorities. CEO Larry Fink announced, “All investments are going to be looked through sustainability.”
But “sustainability” is a mostly meaningless word.
Parnassus claimed it helped meet United Nations sustainability goals of “nutrition” and “sanitation” by investing in U.S. Foods and Clorox.
Starbucks phased out plastic straws while adding lids that used more plastic.
BP rebranded itself as “Beyond Petroleum.” Wisely, it mostly invested in petroleum.
Former Vice President Al Gore made money peddling climate change hysteria. He created “sustainability investment funds,” claiming “sustainability factors…actually enhance returns!”
His funds did enhance Gore’s own returns; he made millions. But over the past three years, his “sustainable” fund underperformed the stock market. Recently the fund managers admitted they “made investment mistakes.”
Most funds promoting “sustainable investment” did worse than the market.
So, why did trillions of dollars pour into such funds?
“Because of pressures,” says Matt Cole, CEO of Strive Investments, in my new video. “Their largest clients are blue
Article from Reason.com
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