Environment Society and Governance (ESG) On The Level

My evolution of thought on ESG has gone from “oh, that is sweet but misguided,” to “looks like virtue signaling at the expense of the shareholders” to “ESG is unwise, and over time, dangerous.” ESG emerged from Socially Responsible Investing (SRI), where money is not invested in companies that engage in environmentally and socially irresponsible practices. The first instance of SRI dates back 200 years, when the Methodists chose not to invest in companies making weapons and tobacco. The difference between SRI and ESG lies in the presumption that ESG-based investing is also considered to make financial sense. [1]

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