Publicly traded companies are already given ESG ratings.
When I research energy, I always look for the ones that have a “Laggard” ESG rating. They have a better chance of actually making profits than “Leader” rated companies which invest too much in solar, wind, etc.
I know Schwab does the ESG thing. Everytime I log into my account I see those ESG tags. I’ve mostly ignored it thus far, but really shouldn’t. A lot of the mess we’re in is because conservatives ignored and laughed at what the left was doing.
That’s the million (or trillion) dollar question. Doesn’t corporate management have a fiduciary responsibility to the owners/stockholders?
If, for instance, a bank lends money not based on the ability of a borrowing company to make money but based on some arbitrary standard that could cause the loan to go bad, hasn’t the bank intentionally lost its shareholders’ money?
I’m pretty sure management cannot knowingly engage in business practices that will lose money.
So how does this ESG nonsense work unless the law is changed?
“Leader” companies are run by corporate officers violating their fiduciary duties.