Who Elected the Bankers? by William Watson
Appeared in the Financial Post on November 9, 2021
Gina's Thoughts
William Watson asks the question, "But who elected the bankers and financiers? By whose authority do they take it upon themselves to collude — albeit in a nice, open, idealistic way — to achieve the slow strangulation of selected industries and activities?" The same question can be asked about the small groups of people making big divestment decisions at universities, pension funds and institutions. Who elected them? By whose authority do they take it upon themselves to eliminate an entire industry from their investment pool? To eliminate an entire sector from your investment or lending portfolio is folly and does not align with the interests of shareholders and beneficiaries. To use ESG criteria as the justification is misleading. Canadian hydrocarbon companies have high environmental standards and are the largest investors in innovation in Canada — contributing to ever improving environmental performance. They provide some of the highest paying jobs in the sector and contribute a host of other social benefits. On governance, they adhere to the highest measures of transparency and reporting. "Thanks in part to the networking of Mark Carney, past governor of two central banks, much of the world's financial sector is pledging to act in common to try to deny money, insurance and other financial services to businesses that are insufficiently compliant with whatever carbon requirements the group decides to impose." This is what the divestment movement is all about. It is the antithesis of ESG investing and must be rejected.
