ESG is on its way out — now that investors have been forced to wise up
This will be a huge hit to the ESG industry not simply because BlackRock is the world’s largest asset management company, but because it was a pioneer in promoting ESG investment.
BlackRock’s Fink says he’s stopped using ‘weaponised’ term ESG
ESG, a catch-all term that encompasses a range of ethically responsible business practices, from curbing carbon emissions to cracking down on discrimination in the workplace, has become politically polarizing in parts of the Western world, especially in the United States.
Republican politicians have attacked ESG as a way for the corporate world to implement what they argue is a politically liberal agenda, triggering a backlash from Democrats who are seeking to defend it. The controversy has led to some Wall Street firms backing down on ESG commitments, with insurers abandoning a United Nations-backed climate alliance becoming the latest example last month. BlackRock has itself been the target of investigations by some Republican-controlled states, and even an investment boycott in Texas.
But he said dropping references to ESG would not change BlackRock’s stance. The firm would continue to talk to companies it has stakes in about decarbonization, corporate governance and social issues to be addressed, he added.On the issue of climate change, BlackRock has sought to strike a balance, continuing to invest in fossil fuel companies while nudging them to adopt energy transition plans. It has projected that by 2030 at least three quarters of its investments will be with issuers of securities that have scientific targets to cut greenhouse gas emissions on a net basis.
Well, to be honest …. nobody used the term ‘ESG’ anyway …. besides the usual suspects like BlackRock, BlackRock owned companies, Greenwashing tourists, investment funds and of course the McKinsey clientèle.
Who came up with the term ‘ESG’ anyway? Officially the United Nations ….. Unofficially, probably WEF, BASF or McKinsey.
And if you read carefully …. I quote:
It has projected that by 2030 at least three quarters of its investments will be with issuers of securities that have scientific targets to cut greenhouse gas emissions on a net basis.
They’re also starting to drop the ‘zero’ from the ‘net zero’ greenwashing “bullshagga“.
The problem of BlackRock’s CEO is his entourage and where he gets his info from … those kind of CEOs have usually locked themselves up in an ivory tower staring at the ‘Narcissus mirror ‘ surrounded with (ex) McKinsey advisors who feel the pulse of society through data analysis, academic litterature and of course the WEF ‘Leninist’ propaganda pamphlets. The results? Well, five years ago, nobody knew the name “BlackRock” … today, the name “BlackRock” is linked to a whole library of conspiracy theories …and stands for Hell incorporated.
Well done McKinsey!