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ESG (environmental social governance) is a fraud
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Towgunner Offline
Sparrow

Posts: 113
Joined: Dec 2016
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Post: #1
ESG (environmental social governance) is a fraud
ESG stands for environmental social governance. ESG is all the rage right now in the financial services community. Flagship mutual funds once called things like Magellan are now ESG funds. I can't seem to make any sense out of this and many of my peers in this industry can't either. ESG is a metric that many companies are now being held too. For instance, if a company's ESG score isn't sufficient, it will not be included in a stock screen and therefore will not be considered by investors as a possible investment. Said company won't even hit the radar. It sounds simple enough. Environmental - green shit. Social - what you'd expect and dread, equality, women, minorities, homosexuals. Governance? ? Don't know, perhaps the internal policies are in place to execute on all this shit. Thing is, environmental shit tends to be expensive. Social shit means you do not hire the most qualified people. Governance, if I'm right, is likely authoritarian. What gets me is this...none of those things optimizes profitability, which is the only thing that matters to a company and to an investor. ESG is, therefore, a perversion. It would channel capital to companies that might be ESG compliant, but, since ESG compliant is not the same as optimized profitability, chances are high that capital would be misallocated. Since this is being done at a systemic level, valuations for lessor companies will rise and ones that are not included, but, may have a more optimized profitability model would have less capital investing in it and, therefore, under valued. An investor has one job - sustaining capital and growing it. You grow capital by making wise investments. A wise investment is a company that is profitable. ESG is not a marker of profitability. Its more of a PR window dressing virtual signalling bullshit. Most people get this. But major funds are investing huge sums of money to better measure a company's ESG score.

Its simply all bullshit. Once more, where the fuck does wall street, of all places, get off lecturing anyone about "morality"?
02-10-2020 08:47 AM
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ESG (environmental social governance) is a fraud - Towgunner - 02-10-2020 08:47 AM
RE: ESG is a fraud - pitbullowner - 02-10-2020, 08:51 AM
RE: ESG is a fraud - Leonard D Neubache - 02-10-2020, 08:58 AM
RE: ESG is a fraud - It_is_my_time - 02-10-2020, 09:19 AM
RE: ESG is a fraud - pitbullowner - 02-10-2020, 09:24 AM
RE: ESG is a fraud - It_is_my_time - 02-10-2020, 09:46 AM
RE: ESG is a fraud - Paracelsus - 02-10-2020, 10:07 AM
RE: ESG is a fraud - Leonard D Neubache - 02-10-2020, 10:14 AM

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