Who Benefits From The Fight Against ESG?
Peter Krull: Forbes.com
Several state legislatures have recently begun punishing investment companies that take environmental, social, and governance (ESG) data into consideration when making investment decisions.
Elon Musk tweeted, “ESG is a scam. It has been weaponized by phony social justice warriors.” In an opinion piece in The Wall Street Journal, former Vice President Mike Pence says that investing using ESG principles is politically driven and is part of a plan by the “woke left” to conquer corporate America.
While all of this may be great rhetoric to motivate a political base, along with the boogeymen of CRT (Critical Race Theory) and DEI (Diversity, Equity, and Inclusion), the question is, what is the ultimate goal of this fight and who does it benefit?
In the case of the state legislatures, most are from states where fossil fuels are a major contributor to their local economies. It makes sense that they're trying to protect jobs and tax revenues. However, if they truly are motivated by a sense of duty to their constituents, wouldn’t they take the time to see the writing on the wall when it comes to fossil fuels? All the major automobile manufacturers are transitioning their fleets from internal combustion engines (ICE) to battery electric. Most major utilities are phasing out their coal plants and making massive investments in solar, wind, and storage. It would make sense, instead of protecting a dying industry, that they instead focus on job retraining programs and incentives to bring new economy companies to their states. Read more here.