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The ‘Woke Police’ Are Coming for ESG — Here’s Why They Should Stand Down
The Hill ^ | 04/26/23 | WILLIAM S. BECKER

Posted on 04/26/2023 1:36:47 PM PDT by nickcarraway

The people we elect to solve problems in America have a rich assortment from which to choose. We have persistent wage and wealth gaps, accelerating climate change, insufficient defenses against cyberattacks, divisive culture wars, a fossilized energy economy, a stalemate on international nuclear arms control, threats of civil war, domestic terrorism, and more.

So why do some politicians make a big deal out of problems that don’t exist? Fake problems, as it were.

Take the campaign against ESG. ESG refers to the environmental, social and good-governance policies adopted by many businesses, money managers and shareholders to ensure investments don’t result in environmental damages, social inequity and other adverse consequences.

Critics are on the warpath, especially on the far right. In a recent op-ed, U.S. Rep. Andy Biggs (R-Ariz.), chairman of the right-wing House Freedom Caucus, goes on a serious rant. “ESG is being used to promote woke, leftists policies through authoritarian means,” he writes. “A feature of ESG is the cozy relationship between radically left big government and the radical leftists in big business.”

“ESG is a dangerous homage to the long history of attacks on the people by their own government,” he continues. It’s “the making of a totalistic society where Americans are under the thumb of the corrupt, controlling D.C. cartel.”

With only slightly less invective, Florida governor and prospective presidential candidate Ron DeSantis puts ESG high on his hit list of so-called woke policies. He is about to sign a bill requiring the state’s $182 billion retirement program to consider only “pecuniary factors” when it invests its funds. As March began, Kentucky, Mississippi, Indiana, Arizona, Idaho and North Dakota had similar policies, according to a Harvard report.

However, the only totalitarian thing in the ESG universe is how conservative lawmakers are inserting themselves between financial managers and clients who want their money put into socially and environmentally responsible enterprises. The government has no business interfering with that relationship.

One of the principal drivers of ESG opposition is the decision by several institutional retirement funds to avoid fossil fuels. “Woke police” contend the practice violates money managers’ fiduciary duty to maximize their client’s investment returns. But environmental and social policies have financial implications.

“It’s becoming clear that those making proactive strides to hold themselves accountable [to ESG criteria] may be better in position to thrive long term,” according to the business management consulting firm Deloitte. One of its officers added that sustainability has become a business imperative about “unlocking value for a company and its stakeholders, as well as creating a sustainable future, where people and the planet prosper together.”

For example, with climate change becoming an increasingly urgent problem, carbon-free renewable energy is a much better bet than fossil fuels in both the short and long terms. The fiduciary duty of money managers and publicly traded corporations is to consider investment risks as well as rewards. Because fossil fuels are the leading cause of global climate change, nearly 200 nations plan to phase them out. Scientists warn that most of the remaining reserves of oil, natural gas and coal must remain underground.

The oil and gas industry also faces the risk that investments in new pipelines and other infrastructure will be stranded — in other words, forced to retire before investments pay off — as the world continues shifting to carbon-free energy.

Renewable-energy technologies are already less expensive than fossil fuels in many parts of the world. Financial advisory firm Lazard issues annual reports on the “levelized’ cost of different energy resources — that is, the price that covers all the production costs of a resource over its lifetime. This year’s report, published earlier this month, concludes the global boom in renewable energy and energy storage will continue because the unsubsidized price of electricity from solar and onshore wind technologies is well below the cost of gas-fired generation.

In addition, Lazard found the unsubsidized levelized cost of solar and wind power coupled with energy storage is “approaching competitive levels with conventional generation.”

Many investors want, and even demand, that their money be put into ESG-guided investments. A Deloitte survey last year found “ESG considerations continue to transform today’s financial landscape” as companies respond to “rapidly increasing stakeholder expectations.”

As far back as 2019, the Harvard Business Review called ESG an “investor revolution” and said it was outdated to think it wasn’t good business. “ESG issues have traditionally been of secondary concern to investors,” the Review explained. “But in recent years, institutional investors and pension funds have grown too large to diversify away from systemic risks, forcing them to consider the environmental and social impact of their portfolios.”

AI-generated music is officially a hit — how will it change the music industry? Intelligence leaks show the US and NATO are throwing away victory in Ukraine Republican Sens. Chuck Grassley (Iowa), Mike Crapo (Idaho) and Mitt Romney (Utah) are some of the latest to jump aboard the anti-ESG bandwagon, even though they have been renewable energy advocates in their states. Explaining Grassley’s position, a spokesman said ESG involves “coercive elements” opposed to the senator’s position that “capital markets should drive a low-cost shift to cleaner energy.”

That’s exactly what’s happening. The woke police should stay out of it.


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
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1 posted on 04/26/2023 1:36:47 PM PDT by nickcarraway
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To: nickcarraway

2 posted on 04/26/2023 1:42:46 PM PDT by Boogieman
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To: nickcarraway

Buy Ratheon...piss ‘em off.


3 posted on 04/26/2023 1:45:04 PM PDT by pfflier
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To: nickcarraway

Idiotic premise that ESG is what investors want. ESG is being used as an after the fact excuse for poor fund performance.

Bad returns? Well you told me I needed to invest in windmills.


4 posted on 04/26/2023 1:46:03 PM PDT by HYPOCRACY (This is the dystopian future we've been waiting for!)
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To: nickcarraway

There is a Global Shortage of Fossil Fuel Fertilizer because team Obama told banks to shift lending from oil drilling to Green Energy. By next year a billion more people will face hunger. Within 3 years 2 billion will face critical food shortages.

Netzero Starvation


5 posted on 04/26/2023 1:46:30 PM PDT by MattMusson (Sometimes the wind bweek.lows too much)
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To: nickcarraway
However, the only totalitarian thing in the ESG universe is how conservative lawmakers are inserting themselves between financial managers and clients who want their money put into socially and environmentally responsible enterprises.

Total misrepresentation of what ESG truly is. If an individual wants to make "socially and environmentally responsible" investments, no one is stopping them from doing so. But forcing people to make those choices and tying a credit score to the types of investments (or other purchases) people make is what ESG is really all about.

6 posted on 04/26/2023 1:48:31 PM PDT by Major Matt Mason (To solve the Democrat problem, the RINO problem must first be solved.)
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To: nickcarraway

ESG... Extra Stupid Government


7 posted on 04/26/2023 1:48:33 PM PDT by maddog55 (The only thing systemic in America is the left's hatred of it!)
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To: nickcarraway

What a rambling screed. Got yer panties in a wad, Bill? Careful. That’ll choke off what little blood makes it to your peabrain.


8 posted on 04/26/2023 1:49:02 PM PDT by Seruzawa ("The Political left is the Garden of Eden of incompetence" - Marx the Smarter (Groucho))
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To: HYPOCRACY

>>Idiotic premise that ESG is what investors want.

Notice the fake term “stakeholder” used everywhere in the article. Companies and fund managers have a fiduciary responsibility to the SHAREHOLDERS, not the “stakeholders” which always include politicians and Marxist activist groups who have no financial investment.


9 posted on 04/26/2023 1:56:21 PM PDT by vikingd00d (chown -R us ~you/base)
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To: vikingd00d

Agreed. A “stakeholder” is someone who wants to drive a stake through us freedom lovers.


10 posted on 04/26/2023 1:59:33 PM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: MattMusson

How will the decaying bodies of hundreds of millions of people affect the whiny ESG crowd?


11 posted on 04/26/2023 2:03:59 PM PDT by Chgogal (Welcome to Fuhrer Biden's Weaponized Fascist Banana Republic! It's the road to hell.)
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To: nickcarraway

ESG and perversion are THE issues.


12 posted on 04/26/2023 2:05:06 PM PDT by Fai Mao (Starve the beast and steal its food!)
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To: nickcarraway

esg is fascism


13 posted on 04/26/2023 2:06:04 PM PDT by joshua c (to disrupt the system, we must disrupt our lives, cut the cable tv)
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To: Boogieman

.


14 posted on 04/26/2023 2:20:14 PM PDT by sauropod (“If they don’t believe our lies, well, that’s just conspiracy theorist stuff, there.”)
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To: nickcarraway
If you want to invest in ESG funds, go for it. If you want to see ESG funds, go ahead.

My problem is when government waives fiduciary rules to allow ESG funds into retirement accounts without a non-ESG option. If you allow a wokeness score to override annual financial returns then you are breaking your fiduciary responsibility. And those pushing ESG want to do it without allowing their trapped investors an alternative.

15 posted on 04/26/2023 2:25:56 PM PDT by KarlInOhio (Democrats' version of MAGA: Making America the Gulag Archipelago )
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To: nickcarraway
Blivet- 10 lbs of horse crap in a 5lb bag.

If you don't want to die, freezing, in the dark, eating bugs...

If you don't want 40 year old, obese, deviant, delusional men, dressed as female clowns teaching sexuality to your children...

If you don't want your 5 year old son groomed, poisoned, mutilated and convinced that he's a girl...then you are just a bad person./sarc

16 posted on 04/26/2023 2:39:08 PM PDT by Eagles6 (Welcome to the Matrix . Orwell's "1984" was a warning, not an instruction manual.)
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To: nickcarraway

There is something mentally wrong with these people. They do not seem to have any ability to use or even notice logic.


17 posted on 04/26/2023 3:15:40 PM PDT by Agatsu77
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To: vikingd00d

Bingo.


18 posted on 04/26/2023 3:21:46 PM PDT by HYPOCRACY (This is the dystopian future we've been waiting for!)
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To: nickcarraway

ESG Schwab, black rock, vanguard, soros, gates, zukerbrot, all enemies of free people


19 posted on 04/26/2023 3:36:36 PM PDT by ronnie raygun
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To: ronnie raygun

‘ people we elect to solve problems in America have a rich assortment from which to choose. We have persistent wage and wealth gaps, accelerating climate change, insufficient defenses against cyberattacks, divisive culture wars, a fossilized energy economy’
Wow how can this list not include 31 trillion in debt and 800 billion a year in interest on it and 100000 deaths from fentanyl and 4 million illegal aliens in 2 years and a 30 percent rise in murder and cities being burnt and homeless zombies smoking crack everywhere


20 posted on 04/26/2023 4:04:44 PM PDT by brookwood (To acheive equity, the percentage of whites in prison must equal the percentage of blacks in prison)
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