Arrr! The ESG cheerleaders be scamperin' like scurvy dogs, changin' course and hidin' from the storm!
2023-08-15
Arrr! The scurvy dogs runnin' the grandest treasure-laden investment firms in our land be supportin' these ESG schemes, ye see! They be fightin' for the environment, society, and proper governance, arrr! Aye, me hearties, they be true champions of the righteous booty!
The controversy surrounding environmental, social, and governance (ESG) investment schemes continues to grow, leading even the most vocal supporters to distance themselves from the term. BlackRock CEO Larry Fink, a prominent advocate for ESG investing, recently announced that he will no longer be using the term and expressed his shame in being involved in the debate. German-owned proxy advisory firm ISS is the latest to distance itself from ESG. Investment firms like BlackRock, StateStreet, and Vanguard have been leveraging their massive portfolios, including state pension funds and retirement savings, to force companies to advance radical political goals. This raises concerns about using investors' assets without their knowledge or consent to pursue an activist agenda they may disagree with. Additionally, ESG investing schemes can diminish returns for state pension funds and retirement funds, prompting state treasurers and financial officers to take action to protect their fiduciary responsibilities. Proxy-advisory firms like ISS and Glass Lewis have significant influence over how corporate clients vote on shareholder proposals, controlling 97% of the market. In response to concerns raised by state treasurers and financial officers, ISS claimed that their benchmark policy supports just 52% of environmental and social shareholder proposals while backing over 96% of management resolutions. However, ISS's German ownership by Deutsche Börse, a firm committed to ESG, raises questions about their objectivity. As more information about ESG is revealed, investors are growing increasingly angry, leading state financial officers to shed light on ISS's ESG voting trends. The controversy surrounding ESG investment schemes shows no signs of abating.