OWe recently wrote about how environmental, social and governance, or ESG, rating, a pernicious attempt to insinuate enlightenment into finance, was being used to make Russian state oil companies look like better investments than American oil companies. We also highlighted how ESG accounting was being used to falsely disparage the creditworthiness of some states, including Utah.
This should have been proof enough that the whole ESG concept as a measure of corporate strength is really just a scam designed to lower the American standard of living.
REPUBLICANS AIM TO TURN ESG INTO ACCOUNTABILITY 2024 FOR DEMOCRATS
The purpose of ESG, after all, is to make gasoline and other affordable and reliable energy sources more expensive while putting extreme pressure on companies to commit to a signal of virtue. awake on social issues. By depriving necessary oil and gas exploration projects of investment, ESG is trying to make energy less affordable and less reliable. By encouraging lobbying for woke fringe positions and against common-sense laws protecting children, the ESG attempts to enslave corporate America, turning them into a servant of left-wing causes.
And mysteriously, the social progress standards of ESG only ever seem to apply to corporate America. S&P, for example, has assigned higher ESG scores to Russian state-run oil companies, companies linked to the Ukraine war crimes underway today, than to US oil companies. Go figure.
In addition to helping Russian President Vladimir Putin finance his invasion of Ukraine, ESG rating has recently had another detrimental effect. Perhaps very few people have noticed, but the greatest crime in financial history has just been exposed. Before losing billions in investor money, cryptocurrency platform FTX had been hailed by many for its commitment to ESG. The World Economic Forum gave the company a perfect ESG score and made it a partner.
FTX is now bankrupt. Worse, he is accused of stealing from his own customers and trading with their money. A $32 billion company became worthless almost overnight. The sums at stake are approaching the scale of the Enron scandal. It all sits at the feet of an ultra-woke corporation whose executives have donated hundreds of millions of dollars to Democrats and other left-wing causes.
Demoralized and broke FTX CEO Sam Bankman-Fried may now experience pangs of conscience. He sent a telling text message to Vox’s Kelsey Piper in which he lamented “this stupid game we woke up westerners to play where we say all the right shibboleths and so everyone loves us.”
To the extent that an investor has been foolish enough to look at ESG scores and make decisions based on them, they have been systematically misled about the value and strength of FTX. Investors and depositors who looked at these scores and thought that this whole wake-up call represented some kind of benefit are victims of systemic fraud.
It hardly needed the FTX disaster to realize that awakening is not a boon for any company or investor. It’s a luxury outlay for the deranged and privileged few who are either committed extremist ideologues or who feel social or financial pressure from angry online mobs to pretend to favor leftist political positions.
Investments should be made based on business realities and potential returns, not a company’s adherence to left-wing fringe politics. When private investors deliberately bet on enlightenment as the currency of the kingdom, they lose money and get what they deserve. But it has to be a priority to prevent people from being misled into thinking that ESG means something. More importantly, every state government must ensure that its pensions and other funds are safe from the wacky fraud that is ESG.
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