On Feb. 28, Sen. Chuck Schumer (D-N.Y.) wrote an impassioned appeal in The Wall Street Journal for Republicans to support environmental, social, and governance (ESG) scores because ESG ostensibly represents the free market at work, by offering investors more “choices.”
Schumer appears to be deeply confused about how ESG operates. Or, more likely, he’s pandering to his powerful donors; pro-ESG asset management titan BlackRock reportedly donated more than $100,000 to Schumer’s reelection campaign in 2022.
Whatever the case may be, in reality, ESG results in the complete opposite of what Schumer claims. Putting aside the highly problematic “woke” metrics ensconced in all ESG frameworks, ESG at its core is designed to centralize decision-making power among an enormously powerful public-private cartel of elites and international organizations. It blatantly attempts to fundamentally transform the economy by severely altering traditional methods of assessing risk and allocating capital and credit. Rather than being judged solely based upon material factors such as revenue and the quality of goods and services, entities under ESG are judged based upon their commitments to arbitrary, subjective, political goals such as mitigating climate change and advancing social justice causes.
Businesses deemed by this elite cabal to be sufficiently committed to said goals are given a “high” ESG social credit score, and are rewarded with substantial capital in-flows, tax breaks, grants, access to special financial vehicles, preferential contracting, and other advantages. Businesses assigned “low” ESG scores suffer from reduced or eliminated access to capital, credit, and even insurance.
Just listen to Bank of America CEO and Chairman Brian Moynihan, who also runs the World Economic Forum’s International Business Council. At the WEF’s 2022 Annual Meeting in Davos, Moynihan committed to using the financial clout of his entire institution, including the funds of individual investment account holders. As Moynihan put it, “200,000 people, a three trillion-dollar balance sheet, 60 billion in expenses; you start aiming that gun, and you take that across all these companies, it is huge. … [The companies] delivering on the metrics will get more capital, the ones that won’t will get less.”
With so much wealth in the hands of a relatively small group of players who are committed to using their capital for ESG objectives, companies have little choice but to comply and pursue those objectives, lest they risk dying on the vine. There’s little to no actual choice involved, for the business or the investor.
For instance, entire industries such as oil and natural gas extraction, tobacco sales, and firearm manufacturing are often designed to be screened out from investment funds, loan offerings, and insurance underwriting, with many large asset management firms like BlackRock divesting heavily from critical economic sectors. These fund managers even target much of the agriculture sector due to its supposedly high carbon dioxide emissions, further exacerbating negative food supply shocks. This occurs, regardless of whether investing in such industries would result in financial gains for the investors who have entrusted asset managers with their hard-earned money.
Asset managers—including the fund fiduciaries charged with safeguarding and growing retirement accounts and pension funds—have a legal responsibility to their investors. And, investors often don’t even know that these fiduciaries are using their funds to pursue political objectives at the expense of financial returns.
The result is that investor choices are limited by the fund managers to those companies that produce less greenhouse gas emissions, have the “right” ratio of white, black, Asian, and Latino employees, and donate to the “proper” political causes such as Black Lives Matter and Planned Parenthood.
I would bet that if these investors’ wealth had been allocated based purely upon financial metrics, and diversified to include companies involved with fossil fuels, firearms, or agriculture, they would have seen substantially higher returns on their investment in recent years. In fact, many studies have shown ESG-centric funds significantly underperform compared to traditional funds.
Using a natural experiment, University of Chicago researchers found that none of the highest-rated sustainability funds they studied outperformed any of the lowest-rated sustainability funds—though the former received more capital than the latter.
In December 2022, Bloomberg analyzed the 10 largest ESG funds by assets as compared to the S&P 500 index. Eight of the 10 funds performed worse, many substantially so. For instance, Vanguard’s FTSE Social and its ESG U.S. Stock both suffered year-to-date losses of minus-20.6 percent, compared to S&P’s minus-14.8 percent. The Brown Advisory Sustainable Growth Fund suffered a staggering minus-28.1 percent loss, nearly double that of the S&P index fund.
Regardless of the financial performance aspect of ESG investing, intentionally screening out companies involved with certain industries distorts the marketplace and the macroeconomy, and limits choice. Moreover, decreasing investment flows to vital industries such as energy—which is the lifeblood of any economy—results in reduced research and development that drives economic growth, and less prosperity for everyone.
Ultimately, rather than letting the invisible hand of the free market decide where investment should flow, the intervention of ESG factors into investment decisions fundamentally changes our entire financial and economic systems. Controlled investment is the antithesis of a free market, and is very similar to a socialist or fascistic command-and-control economic model. And, unsurprisingly, those advocating for this new economic model stand to gain the most.
To be clear, if an individual wants to invest funds in companies that are more “socially responsible,” that individual can do so of his or her own volition. But, ESG takes that choice away from those who value financial returns more than sociopolitical objectives.
Don’t be deceived. ESG systems are designed to subjugate free markets by relying upon coercion, pressure, and control—not to “provide more information” to socially conscious investors. Nothing about ESG belongs in a free marketplace in which businesses supply goods and services based upon societal demand for those goods and services. It’s past time to snuff out ESG before it grows unstoppable.
Views expressed in this article are the opinions of the author and do not necessarily reflect the views of our premium news partners at The Epoch Times.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
