Good Cop, Bad Cop, Dumb Cop

I have been saying for years that over time the “ESG” label will simply disappear, and this analysis will become part of everyone’s basic investment due diligence. I find it ironic that those who most vigorously oppose the inclusion of ESG analysis in investment decision making are the ones now accelerating this evolution.  The current state of play in this regard is discussed in an interesting Bloomberg article published today.

Countermoves by the various investment industry alliances (to disarm allegations of collusion) are an example of the game within the game.  In the grand scheme of things, it will make little difference to the cynical politicians who are attempting to exploit ESG for personal political advantage.  Nor will it change the behavior of investment managers who accept that if they do not consider ESG related risks and opportunities they would be in breach of their fiduciary duty to their clients.

And as for the New Hampshire legislature enshrining the criminality of ESG investing in a law which requires investment managers to breach that fiduciary duty, unsurprisingly those likely to suffer most will be the pensioners of New Hampshire.  What this situation desperately needs is a case brought by the state under this law, where it will be defeated soundly on its facts.  Of course that decision won’t stop politicians from misleading their constituents on ESG.  But it will make it increasingly obvious why they are doing it.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.