“Sustainable” investing became popular a few years ago.
So-called experts say businesses should not just focus on profits. They should try harder to be “nice.” [emphasis, links added]
Funds promoting ESG (environmental, social and governance) are all the rage.
Large investment firms like BlackRock are putting pressure on companies to hire more women and minorities. CEO Larry Fink announced, “All investments will be looked at through the lens of sustainability.”
But “sustainability” is basically a meaningless word.
Parnassus claimed it By investing in American food companies and Clorox Company, we help achieve the United Nations' sustainable development goals of “nutrition” and “hygiene”.
Starbucks is phasing out plastic straws and adding lids that use more plastic.
BP rebrands itself as Beyond Oil. Wisely, it invests primarily in oil.
Former Vice President Al Gore made money by peddling hysteria about climate change. He created a “Sustainable Investment Fund” claiming that “sustainability factors…actually enhance returns!”
His money did boost Gore's returns; he made millions. But his “sustainable” fund has lagged the stock market over the past three years. Recently, fund managers admitted that they “made investment mistakes.”
Most funds that promote “sustainable investing” perform worse than the market.
So why are trillions of dollars pouring into such funds?
“Because of pressure,” Strive Investments CEO Matt Cole says in my new video. “Their biggest clients are blue state pensions like CalPERS and New York, and they put pressure on them: “Adopt these agendas or you’ll lose us as your biggest clients!”“
CalPERS still touts “mitigating climate risks” and adding “climate-aware board members” to Exxon Mobil’s board.
Presidential climate envoy John Kerry arrogantly bullies banks: 'They will Invest in climate-related efforts,” he mused.
Today, banks and even BlackRock are running away from sustainability nonsense.
“What you're seeing,” Cole said, “is ESG funds are closing at a record rate…and they're not apologizing.”
Progressives would never do that.
This fad not only hurts investors; It hurts the companies America needs.
America needs high-performance computer chips. Intel was once the leading manufacturer of such chips. But now, despite Congress giving Intel billions in taxpayer subsidies, the company is laying off thousands of workers.
Why? While Intel's competitors continue to innovate, Intel is obsessed with “sustainability.”
Intel's website lists numerous ESG goals, such as “environmental, health, wellness and safety programs that care for people and the planet.” It even boasts about “greenware”… whatever that is.
This takes a lot of energy no Make the best wafers. When companies spend their time courting politicians instead of innovating, they tend to decline. Intel's stock price fell 60% last year.
Fortunately, today more and more companies are focusing on basic capitalism—making better products for less money.
Ford recently announced it would no longer require employees to participate in surveys conducted by LGBTQ advocacy groups.
“USA Today” reported that Lowe's will reduce its involvement in human rights campaigns to “narrow its focus to safe and affordable housing.”
When I was co-host of 20/20, I wondered what would happen if Disney purchased ABC.
Not much changed for a while. But a few years later, after repeatedly rejecting my pitch for a film on Obamacare issues, ABC fired me.
Still later, as I watched Disney fully wake up, I smiled.
Top image via John Stossel/YouTube screencap
Reading break at the Town Hall
