Is ESG a gimmick?
Or moreover, is ESG a fraud?
Many question the validity of ESG these days.
Elon Musk referred to ESG as a “villain.”
But, over 1 in 3 investment dollars embrace the investing practice.
Furthermore, in a society where everything becomes politicized. How can we expect any different outcome from ESG ratings?
I predict they will become manifestations of political ideologies. How else could Exxon Mobil, who for a living burns fossil fuels and supplies fossil fuels for burning. Join an ESG index that Tesla, the world’s leading electric car maker sees itself absent from. And this is S&P. Standard & Poor’s one of the most respected firms on the planet. If we see them fall victim to politicization in their ESG ratings. Surely we will see the same from the rest of the firms that rate ESG.
As a result, ESG ratings can not be trusted. In addition, if they can not be trusted. Then thus, they are a fraud.
In conclusion, will we see a massive unwinding of investment dollars chasing this methodology. Moreover, a methodology that might evoke the most virtue signaling anywhere. A model or schema for ratings that constantly finds itself in a state of evolution. As the political ideologies of the moment continue to take hold.
