
One of the latest fads on the left is the “environmental, social and governance,” or ESG, movement, in which large companies and financial institutions promise to be environmentally sensitive, diverse, inclusive and whatever, while remaining focused on making money. In reality, ESG, especially on the investing side, seems more like window dressing and an exercise in mass hypocrisy than anything else.
Not surprisingly, those who stand to make money from the ESG ecosystem — ratings firms, corporate lawyers, audit firms, investment banks, asset managers, proxy advisers, index providers, etc. — want the federal government to create and mandate ESG standards for all companies.
While ESG advocates typically talk about the importance of climate and social issues, they ignore the reality below their rhetoric.