The ESG Investing Backlash Arrives by The Editorial Board
Appeared in The Wall Street Journal on August 15, 2022
Gina's Thoughts
The pushback against ESG investing has begun. The ESG movement has infiltrated investment standards with little scrutiny for several years. This week, about 20 state Attorney Generals signed an eight page letter to BlackRock CEO Larry Fink. They are seeking answers from BlackRock about its political agenda. "The letter is significant politically and financially. These AGs represent states with public pension funds that invest in BlackRock and other funds on behalf of state employees. The states need to know they are getting the best financial returns possible in the market to meet their commitments to retirees. "Based on the facts currently available to us, BlackRock appears to use the hard earned money of our states' citizens to circumvent the best possible return on investment, as well as their vote," says the AGs' letter." With the S&P/TSX Capped Energy Index returning 97.82% over one year, it does seem that the best possible return on investment has been circumvented, all in the name of divestment and ESG.