From the beginning, I had problems accepting that ESG is worthy. Despite my concerns, many fund managers have taken it on as a valid strategy. I have found no business owner who thinks ESG is a reasonable metric in designing a portfolio or in managing a business. They see anything that constrains their business and adds cost opposes their purpose.
Here is an interesting view from people who understand the other side of the politically correct viewing point.
Talk Your Book, The Opposite of ESG.
In the presentation, you will find two things that might surprise you.
ESG rating firms seem to have no objective standards. The article presents the results for six large companies.
I know of no financial metric that would vary to this extent. Not even close. Do you think three agencies would come up with vastly different cash flow amounts or Earning Per Share? Impossible! Ask yourself how Wells Fargo can be rated very high by two rating agencies and near zero by the third.
The presentation includes an audio presentation. It is 37 minutes long, and if you have it in your mind that ESG might matter, you MUST Listen to it.
Investing is not risk-free. It is even riskier if you operate on ideas instead of facts. The ESG ideas are political preferences, not business ideals. Think about your personal investment purpose.
I build strategic, fact-based estate and income plans. The plans identify alternate ways to achieve spending and estate distribution goals. In the past, I have been a planner with a large insurance, employee benefits, and investment agency, a partner in a large international public accounting firm, CEO of a software startup, a partner in an energy management system importer, and briefly in the restaurant business. I have appeared on more than 100 television shows on financial planning and business matters. I have presented to organizations as varied as the Canadian Bar Association, The Ontario Institute of Chartered Accountants, The Ontario Ministry of Agriculture and Food, and Banks – from CIBC to the Federal Business Development Bank.
Be in touch at 705-927-4770 or by email at email@example.com.