https://issuesinsights.com/2021/06/16/it-pays-to-be-green-if-youre-a-wall-street-fat-cat-that-is/
America’s business community has always liked the color “green.” Traditionally, it was about earning U.S. dollars. Today, it’s about brandishing a woke environmental image.
Perhaps nothing showcases this better than the trend toward “Environmental, Social and Governance” (ESG) investments by those on Wall Street. Particularly attractive to millennials, the pitch for investing in ESG’s is to not just “make money,” but “make the world a better place” while doing it.
A noble-sounding idea? Perhaps. But as Rupert Darwall points out in a newly released study “Capitalism, Socialism and ESG,” there’s more to this racket than meets the eye.
That notion of a “better” world from ESG investments applies only if you agree with progressive climate and social agendas. For those who identify as anything other than “liberal,” backing investment strategies to kill fracking jobs, attack red meat, and help promote a Green New Deal economy may prove a bit hard to swallow.
What about all that money to be made? Turns out it is less for your portfolio and more for the bottom line of Wall Street companies.
For example, BlackRock charges 46 cents annually for every $100 invested in its iShares Global Clean Energy ETF, while it charges just 4 cents for iShares linked to the S&P 500 in comparison.
It pays to be woke – if you’re a Wall Street fat cat, that is.
As for average Joe investors buying into these ESG stocks, their bottom lines aren’t as lucky.