…Climate Activists Target ESG…
Environmental, social and governance (ESG) criteria are used to measure whether a corporation is being environmentally and climate friendly.
Climate activists are targeting ESG as a means for forcing companies to meet ESG criteria of their liking, and to deny companies, deemed not ESG worthy, the funds they need for their businesses.
This is a threat that cannot be ignored because millions of Americans have their retirement savings in a broad spectrum of companies.
It’s also a threat to freedom, since companies not meeting arbitrary ESG criteria will not be able to grow their business. They will, in fact, be forced to close if they are unable to obtain financing to cover working capital for inventories, receivables, etc.
While the US Chamber of Commerce has recently endorsed ESG, by saying that companies are responsible, not just to shareholders, but to employees, consumers and communities alike, ESG, as now envisioned by climate activists, can be turned against American companies.
ESG is actually a threat to Americans when used to target greenhouse gasses.
Who is to say what is socially acceptable?
In Germany, according to the Clean Energy Wire (CLEW), the NGO Urgewald and the Association of Ethical Shareholders, are demanding that rules be established to “limit controversial activities like arms trading or large-scale greenhouse gases”.
Also in Germany, a German stock exchange representative said that ESG will, “fundamentally change investment behavior.”
The European Central Bank urged banks to increase their efforts “to manage the financial stability risks posed by climate change and support the transition to a greener economy.”
“The G20’s Financial Stability Board (FSB) published a report that examines potential implications of climate change for financial stability, finding that the ‘breadth and magnitude of climate-related risks’ could outweigh that of other economic risks and ‘challenge financial risk management in ways that are hard to predict.’”
The US Federal Reserve has now joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) in its efforts to fight Climate change.
The threat, therefore, to Americans and their investments, is not just from some radical environmentalists, it’s also from governments … including our government.
Any company that is indirectly involved in industries emitting greenhouse gasses can also be targeted. It’s not just oil companies, such as EXXON, that can be targeted by ESG criteria, but also pipeline companies, mining companies, electric utilities, air-conditioning and refrigerator manufacturers, suppliers of natural gas for home heating, propane gas suppliers, and many more.
Additionally, ESG can target more than greenhouse gases. It can target social justice, or whatever other criteria is promulgated by government.
Read the criteria incorporated in the ESG emblem published by Edward Jones to see how broad a concept ESG really is. Criteria such as, alcohol, firearms, diversity, faith-based, can be targets for ESG.
The concept of social responsibility started when investors were encouraged to deny South African companies financial resources when the country was under apartheid.
No matter how noble the original concept, it has morphed into a tool to force Americans into making only those investments that radical environmentalists and governments deem appropriate.
ESG is no longer something the US Chamber of Commerce should support. It is a threat to Americans.
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