ESG Just Doesn't Work

Description
Episode Air Date: April 20, 2023

We discuss whether ESG actually works as an investment score. Spoiler, ESG doesn’t work.

In early 2022, Harvard Business Review published an article titled "An Inconvenient Truth about ESG Investing," which delves into the effectiveness of ESG as an investment score. Despite its popularity, evidence suggests that ESG is largely ineffective in generating returns for investors. This inefficacy can be attributed to several factors, including greenwashing and companies using ESG as a PR strategy to distract from past performance issues.

We also discuss Ron DeSantis and his hamfisted attempts to fight back against ESG using state powers. It’s a general misstep that politicians use rather than attempting to resolve the issue at its root.

Links for the interested
https://www.flgov.com/2023/02/13/governor-ron-desantis-announces-legislation-to-protect-floridians-from-the-woke-esg-financial-scam/

https://hbr.org/2022/03/an-inconvenient-truth-about-esg-investing