Post by icemandios on Jul 21, 2023 15:49:44 GMT
ESG scoring and mandates remain a subject we have contested since it sprang to life in 2020. The push of “woke activism” on, and by companies, to meet nebulous or artificial standards has led to various bad outcomes.
ESG refers to the Environmental, Social, and Governance risk theoretically embedded in a business. However, while ESG investing is about taking these risks into account in investment decisions, these are all the things NOT on a company’s balance sheet or earnings statements. Such is the inherent problem.
However, as is also the case, with the recent surge in liberal policies, woke activism, and demand for social justice, Wall Street is more than willing to sell products to fill a need. Not surprisingly, with plenty of media coverage, ESG investing became an enormous business.
Following the financial crisis, ESG funds had roughly a ZERO market share of total assets under management. In 2020, ESG-labelled funds in the United States exceeded $16 trillion. It was projected that these funds would exceed $50 trillion by 2025. However, the U.S., which accounts for 11 percent of ESG fund assets, saw outflows of $6.2 billion during the final quarter of 2022.
ESG refers to the Environmental, Social, and Governance risk theoretically embedded in a business. However, while ESG investing is about taking these risks into account in investment decisions, these are all the things NOT on a company’s balance sheet or earnings statements. Such is the inherent problem.
However, as is also the case, with the recent surge in liberal policies, woke activism, and demand for social justice, Wall Street is more than willing to sell products to fill a need. Not surprisingly, with plenty of media coverage, ESG investing became an enormous business.
Following the financial crisis, ESG funds had roughly a ZERO market share of total assets under management. In 2020, ESG-labelled funds in the United States exceeded $16 trillion. It was projected that these funds would exceed $50 trillion by 2025. However, the U.S., which accounts for 11 percent of ESG fund assets, saw outflows of $6.2 billion during the final quarter of 2022.