Submitted by helloworld_141 t3_yemqwz in nyc
Skizm t1_itz3gt4 wrote
Why BlackRock? Aren’t they pretty ESG friendly compared to others?
Jack_Sandwich t1_itz3y03 wrote
ESG is con. It’s a concept invented by giant financial institutions used to knock down small and midsize business competition.
robot_pancake t1_itz5gr4 wrote
Genuinely curious why you think this is or where I can read more about this perspective. :)
barrystrawbridgess t1_itz6o4a wrote
I would have to agree with that redditor. It's financial market blackmail to shift investments to companies that "buy in" into ESG. "Do this and I'll make you more money. Don't do it and I'll make you unprofitable."
robot_pancake t1_itz8afz wrote
Thanks for the links!
How is it blackmail if companies and governments aren’t forced to purchase these funds? One of Tariq’s main points (first vid) is that purchasing an ESG fund doesn’t stop other institutions and larger market players from buying non-ESG funds, which softens divestment initiatives. Tariq also argues that investment is only part of the solution—carbon taxes, caps—whatever we call it—require governments and markets to be in lockstep to make meaningful change.
barrystrawbridgess t1_itz963r wrote
Black Rock has some of the largest fossil fuel investments. Your company shouldn't invest in fossil fuels or we make you look bad. Meanwhile, Blackrock and Vanguard are increasing their interests in fossil fuels. Telling governments to not question them about it. That's the whole point of these "protestors".
https://www.oilandgas360.com/blackrock-tells-uk-no-to-halting-investment-in-coal-oil-and-gas/
sleeptrain123 t1_iu47ekl wrote
A huge part of Blackrock’s AUM is passive index funds and ETFs, where you just own the whole market rather than picking specific investments. If they offer a fund that tracks the SP500, and the SP500 contains oil and gas companies, then the idea that Blackrock or any asset manager should just refuse to buy their shares, is absurd.
Also, much like the car companies who are pivoting to electric, the oil and gas companies will have a key role to play in moving away from fossil fuels. Equity capital exists, divesting from them doesn’t make it disappear, it just means someone else owns it. Asking Blackrock or any other asset manager to sell of their oil and gas holdings is absolutely meaningless
Jack_Sandwich t1_itz6snr wrote
Here is a decent summary article on the underlying flaws in concepts. https://quillette.com/2022/03/02/the-problem-with-the-diversity-dividend/
And you may also want to look at what happened to Sri Lanka, what is happening to Germany. Governments that prioritized ESG scoring, and the disastrous consequences for their economies, their working class people. Spoiler alert: the uber rich all come out okay.
And finally a great little snippet from Vivek Ramaswamy who writes and comments extensively on this: https://twitter.com/VivekGRamaswamy/status/1577273895526318081?s=20&t=EIe7EpNIyBUm1tzZLKdNSA
Skizm t1_itz68tc wrote
More marketing, but yea it’s mostly greenwashing. Companies don’t really have any other levers to pull besides sending letter asking companies to pollute less though since they have a fiduciary responsibility to their shareholders. BlackRock at least shoots off a few public letters and has justified shifting some capital by claiming pollution is bad for returns. It’s not much but my point is still, of all the evil banks, why BlackRock lol.
Paintingmyfreedom t1_itz429i wrote
Please call poison control and report a kool aid overdose
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