In the last few years, trillions of dollars have flowed into stock funds that are focused on environmental, social, and governance (ESG) issues. These funds appeal to our better angels, using slick marketing to encourage investment in socially-responsible companies. The individuals and institutions that invest in such funds likely believe their money is supporting companies that are reducing climate emissions, treating their workers well, and keeping excessive pay for executives in check.
Last April, I told my investment advisor that I wanted to invest some money in ESG funds thinking it was an easy way to support companies that believed in the same things I do when it comes to being socially responsible. This changes that entirely and I am forwarding PI's email to him so that he can see why I now want to pull out of ESGs. This is really sad!
Sheesh, if MSCI is going to give the likes of McDonald's a positive rating on ESG initiatives for doing the bare minimum, we might as well let these corporations write their own glowing praise on this front.
That's the problem with a standard broker as they only make money when they buy/sell (Churning is the terms I've heard used). If you have a voice in it then you need to find a CFP (Certified Fiancial Planner) who does not profit only when they buy or sell. Good luck!
Thank you for your investigation. I was wondering how anyone could really learn what companies were truly working for cleaner air, water, and soil, and felt stumped. We know that many organizations are worth supporting (GreenPeace, Sierra Club, Audubon, The Nature Conservancy, and more) but how much integrity any corporation can claim about protecting our planet's ecology is unknown to me.
Last April, I told my investment advisor that I wanted to invest some money in ESG funds thinking it was an easy way to support companies that believed in the same things I do when it comes to being socially responsible. This changes that entirely and I am forwarding PI's email to him so that he can see why I now want to pull out of ESGs. This is really sad!
Just a wonderful analysis that gets at an important issue that other publications don't cover.
Sheesh, if MSCI is going to give the likes of McDonald's a positive rating on ESG initiatives for doing the bare minimum, we might as well let these corporations write their own glowing praise on this front.
Eye-opening. Thank you.
What a racket! There is no one to be trusted in banking or fund management. They def need to be more strongly regulated—all of them.
An eye-opener.
Judd, it would be helpful to know how deeply TIAA is implicated in this scam. Perhaps a future article?
That's the problem with a standard broker as they only make money when they buy/sell (Churning is the terms I've heard used). If you have a voice in it then you need to find a CFP (Certified Fiancial Planner) who does not profit only when they buy or sell. Good luck!
Thank you for your investigation. I was wondering how anyone could really learn what companies were truly working for cleaner air, water, and soil, and felt stumped. We know that many organizations are worth supporting (GreenPeace, Sierra Club, Audubon, The Nature Conservancy, and more) but how much integrity any corporation can claim about protecting our planet's ecology is unknown to me.