The murky precepts of Environmental, Social, Governance (ESG) criteria wield growing influence in investing and in regulation. Those who want to understand the reshaping of our financial landscape, especially as a means to resist it, should be familiar with ESG’s terms, goals, vocabulary, and advocates. Below, I sketch out several dimensions.
ESG advocates want to reshape the world in profound ways — from how we travel and heat our homes to what businesses must prioritize and whom global supply chains should benefit. They want to move the world to a “low-carbon” economy built on renewable energy. They also favor dramatic redistribution of wealth and power from the “haves” to the “have nots.” Increasingly, they make business their ally (willingly or unwillingly) in carrying out their plans.
To address these concerns with nuance and thoughtfulness, rather than simply reacting, we must raise awareness of ESG criteria, how they are being used, and what kinds of problems they will create. ESG will likely be around for a long time, so it’s worth taking some time to understand it thoroughly.
Hellbound and Down 