“Sustainability” investments became popular a few years back.
So-called experts said companies shouldn’t just focus on profit. They should put more effort into being “nice.” [emphasis, links added]
Funds pushing ESG (environmental, social, and governance) were all the rage.
Giant investment firms like BlackRock pressured companies to hire more women and minorities. CEO Larry Fink announced, “All investments are going to be looked through sustainability.”
But “sustainability” is a mostly meaningless word.
Parnassus claimed it helped meet UN sustainability goals of “nutrition” and “sanitation” by investing in U.S. Foods and Clorox.
Starbucks phased out plastic straws while adding lids that used more plastic.
BP rebranded itself as “Beyond Petroleum.” Wisely, it mostly invested in petroleum.
Former Vice President Al Gore made money peddling climate change hysteria. He created “sustainability investment funds,” claiming “sustainability factors … actually enhance returns!”
His funds did enhance Gore’s returns; he made millions. But over the past three years, his “sustainable” fund underperformed the stock market. Recently the fund managers admitted they “made investment mistakes.”
Most funds promoting “sustainable investment” did worse than the market.
So, why did trillions of dollars pour into such funds?
“Because of pressures,” says Matt Cole, CEO of Strive Investments, in my new video. “Their largest clients are blue states’ pension (funds) like CalPERS and the New York pension (fund) who put pressure on them: ‘Adopt these agendas or you’re going to lose us as your largest customer!’”
CalPERS still brags about “mitigating climate risk” and adding “climate-conscious board members” to Exxon’s board.
Presidential Climate Envoy John Kerry pompously bullied banks: “They will invest into climate-related efforts,” he intoned.
Today, banks and even Blackrock are running from sustainability nonsense.
“What you’re seeing,” says Cole, “is ESG funds shuttering at record speed … and they’re not apologizing.”
Progressives never do.
This fad didn’t just hurt investors; it hurt companies that America needs.
America needs high-performance computer chips. Intel was once the leading manufacturer of such chips. But now, even as Congress gives Intel billions in taxpayer handouts, the company is cutting thousands of jobs.
Why? While Intel’s competitors innovated, Intel was obsessed with “sustainability.”
Intel’s website lists endless ESG goals like “environmental, health, wellness, and safety programs to care for people and the planet.” It even brags about “green software” … whatever that is.
That’s a lot of energy spent not making the best chip. When companies spend time sucking up to politicians rather than innovating, they often decline. Intel’s stock fell 60% last year.
Fortunately, today more companies are focusing on basic capitalism — producing better products for less money.
Ford recently announced it will no longer require employees to take LGBTQ advocacy group surveys.
USA Today reports that Lowe’s will reduce its participation in the Human Rights Campaign to “narrow its focus to safe and affordable housing.”
When I was co-host of “20/20,” I wondered what would happen when Disney bought ABC.
Not much changed for a while. But a few years later, after repeatedly rejecting videos I proposed about problems with Obamacare, ABC fired me.
Still later, I laughed as I watched Disney go full woke.
Top image via John Stossel/YouTube screencap
Read rest at Townhall
Many Banks are now pulling out of the whole Climate Change/Global Warming Scam there is no prophit to be made on false threats like Global Warming/Climate Change