ALEC in the Washington Times: Proponents of ESG see business as a type of social welfare organization
The American Legislative Exchange Council is asking states to consider strengthening their fiduciary rules to protect pensioners from politically motivated investment strategies like ESG.
By Editorial Board – The Washington Times – Sunday, May 15, 2022
Wall Street has gone woke up at its highest levels. Titans of American finance like BlackRock CEO Larry Fink are pushing for American business to be more socially responsible in ways critics say run counter to the interests of shareholders.
Attitudes are shifting in part because of a raft of pseudo-econometric reports coming out of business schools and think tanks purporting to show companies that act in a socially responsible way do well. A 2020 Bloomberg analysis called ESG “a money-making opportunity.”
Maybe. We’ve yet to be convinced. Some of the doubters are pushing back. The American Legislative Exchange Council is asking states to consider strengthening their fiduciary rules to protect pensioners from politically motivated investment strategies like ESG. But the major business groups like the U.S. Chamber of Commerce who are supposed to protect the interests of American business are, sad to say, yet to engage.
In the meantime, how’s this for a bottom line? Exposing the nation’s pensioners and other members of the investor class to increased risk and lower returns for inherently political purposes in an already shaky economy is irresponsible and should be discouraged if not prohibited.