ESG is not a sugar substitute

ESG: Environmental, Social, and Governance. DEI: Diversity, Equity, Inclusion
It’s really important that you learn about these things and how they affect your investments, pensions, and ultimately, all your savings.

Consideration of ESG factors in investing means that fiduciaries can place woke politics over profits and stability when making decisions about their client’s portfolio.

FreedomWorks

Is that what you want for your investments or savings?
How do you know if your portfolio is being managed with ESG factors having a higher priority than actually making a profit? Do you want your bank or credit card company to stop doing business with you because you don’t support woke ideologies?

How do you find out where to bank, with whom to invest?
We’re lucky that some states have taken to publishing lists of financial management companies and investment funds that put ESG over profitability when investing.

If you own individual stocks, you’ll have to visit the websites of those companies. For banks and credit cards, check the websites of those companies just as you would any other company. You’ll likely find links in website footers.

Take my professional “alma-mater” IBM, for example. In its footer, under “About IBM” are two entries: Corporate Social Responsibility and Diversity & Inclusion. Yup. There it is. ESG. Most Fortune 1000 companies will have similar information on their websites.

State Restricted Investment Lists
Texas Comptroller Glenn Hegar just published such a list. Learn more about what it took to be on this list. West Virginia published its Restricted Financial Institution List on July 28, 2022.

States invest huge amounts of money through various funds. Think about the amount of money in various Texas state pension funds, the Permanent School Fund, and local government funds. Why would Texas invest in companies that oppose fossil fuels? Why would West Virginia invest in companies that oppose the use of coal? My mother called that “cutting off your nose to spite your face”. Just flat out dumb.

Fund managers make money from investing these funds. Often, investment decisions are made by these fiduciaries (fund managers) and investments in companies provide them with the capital to grow.

In General
Why support the growth of companies that are diametrically opposed to a state’s largest industry and employer? Why invest money in companies that will use your money to create diversity, equity, inclusion departments instead of using your money to support productivity improvements? If you don’t agree with making ESG (Environment, Social, Governance) or DEI (Diversity, Equity, Inclusion) or both as high corporate priorities, then invest elsewhere.

Finally states are taking steps to not invest hard earned taxpayer monies in woke funds and fund managers. Should you? Learn and decide.

Supplemental Reading