Investment is supposed to take on a new, more humane dimension. Sounds good, but watch for “bait and switch.” Paul Mueller of AIER explains what “Environmental, Social, and Governance” criteria mean.
“ESG advocates want to reshape the world in profound ways—from how we travel and heat our homes to what businesses must prioritize and whom global supply chains should benefit. They want to move the world to a ‘low-carbon’ economy built on renewable energy. They also favor dramatic redistribution of wealth and power from the ‘haves’ to the ‘have nots.’ Increasingly, they make business their ally (willingly or unwillingly) in carrying out their plans.”
“ESG has gained a surprisingly strong foothold in business schools, among investors, and in the world of finance broadly. Advocates have accomplished this infiltration in part through a serious bait and switch. ESG advocates initially claim companies should use ESG criteria to mitigate risk and improve profitability, but later seek to use those criteria to control corporate investment and operations.”
“ESG advocacy is better thought of as a movement of special interests than a conspiracy, but a few key international elites drive the movement and, more importantly, define many of the terms and standards.”
So watch out! In his piece, Mueller describes ESG in detail, including its history.
Environmental protest image by Filmbetrachter from Pixabay.