The consensus ESG investing movement provokes an inverse "Anti-ESG" reaction. Human progress through capitalism is a series of messy tradeoffs. Wise investors look inward for "fairness" and virtues.
I do think the media and index funds does cloud the value of ESG. If Elon Musk says ESG is a fake movement, does that mean it really is? Being that Tesla itself is mostly in a bubble, it does make one wonder.
Would agree that popular media coverage on ESG investing is reducing very complex problems to overly naive "solutions".
There are clear PR and political incentives for major businesses to buy into these rankings, consultant reports, and similar "proof" of commitment. In the worst cases, it really becomes greenwashing and protectionism for incumbents.
This has very little to do with cost-benefit analysis or practical regulation around how long-term capital is allocated for future investment.
Agree on Tesla being somewhat of a paradox here. Regardless of that sky-high enterprise valuation, and all the media circus around Musk, it is hard to understate how skillfully that recently small company has pushed an electrification agenda on major industries. Hopefully, power production and storage technology keeps up.
I do think the media and index funds does cloud the value of ESG. If Elon Musk says ESG is a fake movement, does that mean it really is? Being that Tesla itself is mostly in a bubble, it does make one wonder.
Truly excellent topic choice.
Thanks for the input Michael.
Would agree that popular media coverage on ESG investing is reducing very complex problems to overly naive "solutions".
There are clear PR and political incentives for major businesses to buy into these rankings, consultant reports, and similar "proof" of commitment. In the worst cases, it really becomes greenwashing and protectionism for incumbents.
This has very little to do with cost-benefit analysis or practical regulation around how long-term capital is allocated for future investment.
Agree on Tesla being somewhat of a paradox here. Regardless of that sky-high enterprise valuation, and all the media circus around Musk, it is hard to understate how skillfully that recently small company has pushed an electrification agenda on major industries. Hopefully, power production and storage technology keeps up.