Daily Headlines Live
  • Home
  • Latest News
  • Trending
  • Politics
  • Economy
  • Login
  Breaking
Soviet-Born Republican Congresswoman to Raise Her Daughters February 5, 2023
Chinese spy balloon flies out of Montana and over new U.S. states February 5, 2023
Germany may divert Anti-Coal Green agenda cash to the arms industry February 5, 2023
The Powerball Jackpot grows to $747million after there is no winner February 5, 2023
A Bicyclist Doctor is Accused of Murdering by a Man who Reportedly Mashed About ‘White Privilege’ February 5, 2023
Next
Prev
No Result
View All Result
Live Now
  • Latest News
  • Politics
  • Economy
  • Entertainment
  • Health
  • Lifestyle
  • Sports
  • Technology
  • Media
No Result
View All Result
Daily Headlines Live
  • Latest News
  • Politics
  • Economy
  • Entertainment
  • Health
  • Lifestyle
  • Sports
  • Technology
  • Media
Home News

Trillion Dollar Values-Based ‘ESG’ Funds Pit Wall Street Against Main Street

June 18, 2022
in News
0 0
A A
0

According to a 2021 Gallup survey, 60% of Americans have little to no familiarity with the term ‘ESG’ or Environmental, Social and Governance. But these non-financial factors are redefining capitalism and dominating corporate America’s decision making.

What was once a narrow focus on shareholders and profits has been replaced by words such as “communities,” “environment,” “stakeholders,” and “sustainability.” BlackRock CEO Larry Fink’s annual letter to CEOs echoes this shift when he assures his peers that profits don’t drive value, but rather “values” drive value. The reality is that while ESG creates value for Wall Street, there is a lack of consistent, reliable data proving that it helps Main Street.

The Securities and Exchange Commission (SEC) recently estimated the size of the ESG industry in the United States to be $17.1 trillion. More than $68 billion poured into ESG equity funds in the first two years of the pandemic alone. Middle-class Americans are heavily impacted by these investment strategies because more than half of all assets in state public pension funds (at least $3 trillion) apply ESG criteria.

It’s big business as companies have become hyper focused on publicly brandishing their “values” so that they’re viewed as responsible corporate citizens worthy of investment. But does values-based investing create greater returns?

The University of Chicago compared ESG versus non-ESG investments by analyzing over 20,000 mutual funds representing greater than $8 trillion of investor savings. What they found was startling. While the majority of money flowed to funds with higher ESG ratings, those funds failed to outperform funds less focused on social impact. Forbes similarly reported that ESG hedge funds have been outperformed by their non-ESG counterparts. Further, a Boston College study of public pension funds identified a “negative relationship” between social investing and returns. Wall Street remains undeterred by the data, though, as it continues bombarding investors with soaring rhetoric about decarbonization, while leaving “greenium” fees fund managers charge to screen companies for the fine print. The translation: Main Street pays more, but receives less.

More disturbing than the fragile correlation between ESG and maximizing returns is the mounting evidence that it contributes to inflation. A leading asset management firm recently concluded that ESG is “profoundly inflationary” and intimately linked to our current situation –even before the war in Ukraine. The reason is simple: sustainable products are more costly than conventional ones. Companies can either pass along costs to consumers by raising prices on Main Street Americans or take a loss. I’ll leave you to decide which course of action they’re taking with inflation at a 40 year high of 8.6%. 

I spent nearly a decade on Capitol Hill serving in senior positions in both the Senate and House of Representatives. There has been little discussion of a link between ESG and inflation and I suspect that will continue because of the special interests involved. There’s simply too much at stake for a $17 trillion industry that controls corporate America and empowers Wall Street. The very essence of ESG is that it allows activists to circumvent elected officials by harnessing the market power of companies to implement an agenda. It’s a golden goose they’ll work with Wall Street to protect even if it damages our economy.    

There is no consistent, reliable data proving that dependence on non-financial factors leads to superior investment outcomes. In fact, the only discernible benefit goes to CEOs such as Larry Fink whose firms charge enhanced “greeniums.” More troubling are revelations that ESG may be contributing to surging inflation at a time when American households are spending an additional $460 per month for goods and services. Now is the time for difficult questions as activists push a social experiment that is damaging our economy and enabling Wall Street to enrich itself on the back of Main Street.

Chuck Flint is an attorney and former U.S. Senate Chief of Staff.

The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

Read the full article here

ShareTweetSharePinShareSendShare

Related Articles

News

Dwayne ‘The Rock’ Johnson Praises God And ‘Angels Of Mercy’Car Crash in Terrifying Car Accident: Mom Suffers

by Press Room
February 5, 2023
0

Dwayne “The Rock”Johnson thanked God. “Angels of mercy”After his mother's terrifying accident in which one of her cars was flipped...

Read more
News

Virginia police appeal to the public for help following unidentified body discovered in Williamsburg pond

by Press Room
February 5, 2023
0

Authorities in Virginia are asking for the public’s help in identifying a body that was found earlier this year.James City...

Read more
News

‘Most Transparent Administration Ever’ Won’t Reveal Chinese Balloon’s Whereabouts, Americans Told To Look At Sky For More Information

by Press Room
February 5, 2023
0

If you want to know where exactly the suspected Chinese spy balloon is over the Midwest, you’re out of luck.On...

Read more
News

FAA Closes Airspace In Parts Of Carolinas For ‘National Security Effort’

by Press Room
February 5, 2023
0

Saturday was the announcement of the Federal Aviation Administration, (FAA) that in connection with an U.S. military operation it had...

Read more
News

Biden is mocked by the police for his decision to bring down the Chinese spy ball ‘Abysmally failed’

by Press Room
February 5, 2023
0

Washington reacted to the President Biden’s handling of the Chinese spy balloon with mixed reviews, with praise and criticism falling...

Read more
News

China Reacts to the U.S. Military’s Shooting of Spy Balloons

by Press Room
February 5, 2023
0

China's foreign ministry responded on Saturday to U.S. military firing down its spy satellite over the Atlantic Ocean. It claimed...

Read more
Load More

Latest News

Terry Bradshaw and Chris Wallace: What is it like to ‘Get Under Your Skin?’ People view you this way “Dumb?”

February 5, 2023

Relics from Hollywood legend Gregory Peck’s estate up for auction

February 5, 2023

Multiple States Consider Bills To Shut Down Immigration Detention

February 5, 2023

Pinkerton: When and What did Joe Biden know about China Spy Balloongate, and what was it?

February 5, 2023

Exclusive — Rep. Mary Miller Boycotting Biden’s SOTU Address

February 5, 2023

Popular Stories

  • Trump Makes Announcement On Future Plans After Assassination Of Abe

    0 shares
    Share 0 Tweet 0
  • Supreme Court Supports Second Amendment With Another Major Move

    0 shares
    Share 0 Tweet 0
  • ‘As The Breakfast Tacos’Jill Biden is Slammed ‘Racist’Latin Conference: Comment

    0 shares
    Share 0 Tweet 0
  • ‘Impeachable’ Republican Members of Congress Examine Offense Biden for China Petroleum Deal

    1 shares
    Share 0 Tweet 0
  • French Firearms Surrender in Record Numbers during Government Crackdown

    0 shares
    Share 0 Tweet 0
Daily Headlines Live

Daily Headlines Live is one of the biggest news portals in the US and the world, we provide real-time news from all trusted sources, follow us for more real news.

LEARN MORE »

Recent Posts

  • Soviet-Born Republican Congresswoman to Raise Her Daughters
  • Chinese spy balloon flies out of Montana and over new U.S. states
  • Germany may divert Anti-Coal Green agenda cash to the arms industry
  • The Powerball Jackpot grows to $747million after there is no winner

Sections

  • Economy
  • Entertainment
  • Health
  • Lifestyle
  • News
  • Politics
  • Sports
  • Tech
  • Videos

Newsletter

The most important world news and events of the day

Be the first to know latest important news & events directly to your inbox.

By signing up, I agree to our TOS and Privacy Policy.

  • About
  • Privacy Policy
  • Terms of use
  • Contact
  • Press Release
  • Advertise

© 2022 Daily headlines Live - Created by Sawah Dev.

No Result
View All Result
  • Latest News
  • Politics
  • Economy
  • Entertainment
  • Health
  • Lifestyle
  • Sports
  • Technology
  • Media

© 2022 Daily headlines Live - Created by Sawah Dev.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Go to mobile version