Corporations need a road map to come back from wokeness

Washington Examiner ^ | 3/27/23 | Paul Fitzpatrick

[Libloather]

The tide is turning against woke agendas in corporate America.

Just recently , Vanguard’s CEO Tim Buckley announced that his investment firm - the largest or second largest in the world (depending on how you measure it) - will no longer be committed to Environmental, social, and governance (ESG) or other “net-zero” initiatives.

“Our research indicates that ESG investing does not have any advantage over broad-based investing,” he said in a recent interview.

This comes after Buckley had previously withdrawn Vanguard from the Net Zero Asset Managers Initiative. This initiative, which garnered $59 trillion in commitments from corporations around the world, commits companies to comply with the Paris Agreement’s objective of net-zero greenhouse gas emissions by 2050. Such a commitment, Buckley says, is incompatible with the fiduciary duties of asset managers like Vanguard.

Why? Because ESG funds have simply never outperformed the market, yet they charge outrageous fees claiming to help the planet and other social agendas.

So one of the world’s biggest asset managers has taken a major step. Shareholders demanding basic financial responsibility applaud Mr. Buckley for it.

We at the 1792 Exchange applaud him as well, but as President Reagan said, “Trust, but verify.”

Vanguard may be removing itself from one net-zero alliance and de-emphasizing ESG. But that’s a long way from no longer supporting woke causes in general. The next steps that Vanguard and other asset managers can take include:

[Libloather]

1) Not remaining a member of CERES, a U.S.-based net-zero alliance but with more vague commitments.
2) Not voting proxies for shareholder resolutions that push ESG and other ideological agendas, including those promoted by “ As You Sow .”
3) Not supporting board members who push ESG.
4) Not working with BlackRock and StateStreet to push ESG and other ideological agendas through votes and “engagement” with CEOs.
5) Not blocking distributions from Donor Advised Funds to groups that are unpopular with progressives, such as those misidentified as “hate groups” by the Southern Poverty Law Center.

[KC_Conspirator]

Just recently , Vanguard’s CEO Tim Buckley announced that his investment firm - the largest or second largest in the world (depending on how you measure it) - will no longer be committed to Environmental, social, and governance (ESG) or other “net-zero” initiatives.

Thank gawd. I fully expected that investment firms will be sued for violating their fudiciary duty of protecting and growing their clients retirements and investments. Furthermore, some smart attorney needs to begin suing DEI companies for violating the 1965 Civil Rights Act.

[no-to-illegals]

What is done is not easily undone

[21twelve]

It reminds me of “Atlas Shrugged”. Did a search of quotes and found one (of many) that was fitting:

“Mr. Ward, what is it that the foulest bastards on earth denounce us for, among other things? Oh yes, for our motto of ‘Business as usual.’ Well—business as usual, Mr. Ward!”
-Ayn Rand, Atlas Shrugged, Part 1, Ch. 7

[Tell It Right]

Remember all the blather about the new "fiduciary rule", where the government was supposedly making sure your financial advisor was giving you sound financial advice instead of selling junk products?

We need less government help.

[Alberta's Child]

ESG-based investing will ultimately be destroyed by two things:

1. Poor returns

2. Never-ending disputes over what exactly constitutes an objective set of “ESG” measures.

Item #1 is the obvious one. Item #2 is more subtle but might ultimately play a bigger role. I can easily envision a scenario where investors sue brokerage firms for including the “wrong” companies in an ESG fund, publicly traded companies sue over being left out of ESG funds, etc.

[Recompennation]

Make money the old fashion way, earn it.
Say no to government bribes and intimidation of any sort.
Hire and fire to accomplish productivity by each and every.

[norwaypinesavage]

“Our research indicates that ESG investing does not have any advantage over broad-based investing,” he said"

This tells me that he actually found that it has a disadvantage. The fact that he is dropping the policy, but isn't admitting this, also tells me that he can't be trusted. Get out of Vanguard while you can!

[Rappini]

The road map is put Trump back in the WH.

[unixfox]

The “Roadmap” is called common sense. But that is almost impossible for Washington.

[dfwgator]

Too late. Corporations and Government are now tied at the hip.

[minnesota_bound]

Fire anyone with jewelry thru their nose and multi colored hair or having pronouns or being a democrat.