According to a recent Bloomberg client poll, the vast majority of Wall Street brokers and other market insiders are highly skeptical of environmental, social, and governance (ESG) initiatives, believing ESG funds will continue to underperform and do not have the ability to sustain profits.
Eighty-seven percent of 116 Bloomberg terminal clients who are not directly engaged with ESG edpect the sector’s investment funds to lag behind market benchmarks in the coming year. Moreover, 69 percent of these respondents labeled ESG as a passing fad, a sentiment echoed by only a small minority of those directly engaged in ESG.
However, even those deeply involved in ESG showed signs of apprehension, with 55 percent expecting underperformance in the coming months.
“ESG is a grift and a fad which will underperform investment strategies that focus on serving consumers rather than woke politicians,” said Will Hild, director of Consumers’ Research. This skepticism comes amidst Republican opposition to ESG funds in Congress and a consumer backlash against companies advocating liberal causes.
“Participants of this survey are financial industry insiders, and they are increasingly realizing what we have been saying all along. We expect the collapse of ESG to continue, especially in the US,” continued Hild.
On the regulatory side, House Republicans have called for curbing the Securities and Exchange Commission’s efforts to enforce more transparent corporate-disclosure rules around ESG factors, and seek stricter oversight of proxy-advisory firms. They are also arguing for limitations and exclusions of ESG-focused investments from some pension funds.
See full story at the Daily Mail.
Jack McPherrin ([email protected]) is a managing editor of StoppingSocialism.com, research editor for The Heartland Institute, and a research fellow for Heartland's Socialism Research Center. He holds an MA in International Affairs from Loyola University-Chicago, and a dual BA in Economics and History from Boston College.
