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Who's forgoing profits for ESG scores? That would be pretty novel to me.
by hotpotamus 3y ago
Who's forgoing profits for ESG scores? That would be pretty novel to me.
- hammock 3y agoBecause of the ESG rule* (the repeal of which was the first veto Biden ever used), which allows pension fund managers unprecedented flexibility in their fiduciary duties to choose funds that align with what some see as “woke agenda” goals as opposed to another profit motive, all kinds of public corporations are seeking higher ESG scores, at the expense of profits, so they can stay in these pension funds. It’s controversial because pension managers control over $12 trillion of OPM (other peoples money) in the US, and the great centralization of control of these funds in a few politically connected firms, and have been thus turned into a political instrument of change instead of just a personal returns manager/maximizer. However you want to judge it good or bad, it’s a serious market distortion *The ESG rule—Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights—permits retirement plan fiduciaries, such as 401(k) plan sponsors, to consider climate change and other ESG factors when they select investment options and exercise shareholder rights, such as proxy voting
- hotpotamus 3y agoBut it doesn't sound like it actually happened?
- hammock 3y agoWhat is “it” and what makes you say that?
- hotpotamus 3y agoYou said the ESG rule was vetoed.
- lmm 3y agoRepealing the rule was vetoed.
- deleted 3y ago[deleted]