Ask Peter: What Are My Thoughts on Environmental Social Governance (ESG)?

Should businesses play a role in pushing society towards positive outcomes regarding environmental and social issues? Today we're breaking down my thoughts on ESG by looking at what it should be, what it is, and what it is not.

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Where to find me on Social Media?

#esg #environmental #social #governance

[trippopolis]

I don't want ethics to be dictated to us by

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Some good responses, a few corporate apologists though. Lol. Corporations cannot continue to exist without generating revenue. Hypothetically, a corporation can pollute as much as they need in order to produce their goods, and simply offset their emissions by buying carbon-credits, planting trees, donating money, etc... Never mind the corporations that offshore to China... There's your "E, " for Environment.... The Social aspect is insidious because who are the arbiters of good moral conduct? The same corporations that pollute, lobby politicians, and push forth whatever is in vogue at the time? Corporations do not care about anything other self-preservation. Ethics, from religion, or philosophers, often includes valuing self-sacrifices for the greater good. You cannot tell me a corporation would ever be willing to shut down its business, voluntarily, if it were for a perceived greater good. Instead, they vapidly pander, one day shouting for trans rights, the next day denouncing them as if they never existed (Budlight, Target, ...) as an example. This is the capricious, albeit understandable, way a corporation acts in order to maintain self-preservation. Fine. Do your corporate money making thing, but don't act like you're on some moral high-horse when it is nothing other than a PR campaign in order to ultimately gain greater profits.

[sferrin]

Difficult to see ESG as benign when companies like Black Rock and Vanguard use finance as a cudgel to force other companies to buy into ESG.

[herbertx]

I’ve been fortunate enough to be in the room with the senior VPs at the fortune 50 level of corporate America (one of Peter’s clients) when ESG is debated, policy determined, and marching orders issued. ESG is heavily influenced by the week long party that is Davos and the other silly conferences. The Senior VPs attend, party, and listen to lectures by the usual ESG warriors. When they return home, they take what they ‘learned’ and start forcing it down the corporation’s throat.

[George-bisj]

For me, ESG seems more of a PR exercise. It's a way for massive Multi-National Corporations to say, 'Hey, don't worry about us dodging tax and using child labour, we've banned plastic cups in our offices and have an annual Pride event, that's how wonderful and amazing we are'.

[stevenrussell]

Usually I find your insights compelling. In this case I am reminded of the quote from Catch-22, “Just because you're paranoid doesn’t mean they aren’t after you.”

[SaintInix]

The problem in the first place was money. Money in politics. Having corporate money pushing culture and society isn't good either. Society, culture, politics, should be driven by people, real people, grassroots stuff, not manufactured or directed by anyone just because they have extra money to throw around.

[johnbeech]

Disagree about the influence of WEF, the group think and policy fallout is strong across Europe and Canada. Think farmer protests in the Netherlands blocking roads with tractors over fertiliser and land usage.

[shopkins]

ESG is NOT about how a company approaches these issue. It’s is about control by external forces upon that company: what their loans will cost, if they can get loans, not far down the road, how they are taxed, etc.

Open your eyes, Peter.

[shanenickolson]

ESG is a social credit score for companies enforced by Finance and HR. It is corrosive.

[yeetsalittle]

Businesses have an obligation to not destroy the environment, but they have no right to dictate society and societal norms

[Matt_K]

Correct, there are no "regulatory" guidelines. But the guidelines that DO exist are far worse, because those are established by BlackRock, Vanguard and State Street and CEO has clearly stated that they intend to force anyone who oppose that to follow their rules.

[dava]

I'm in Canada, everything the WEF has presentations about, every policy recommendations they make, etc. it all comes to fruition here. So, whatever they talk about at this party just ends up being implemented here and this is causing serious headache. From simple diversity hiring in places where it becomes life threatening (in health care) to incoherent environmental "well meaning" policy. WEF documents and experts also affects our city planning, so we have american style homlesness and growing violence, same as in the Democrat run cities (well, we are going in the same direction, hell).

[DeepThink]

I was expecting a more insightful video on this topic by Peter. I’m very skeptical of ESG, and the question regarding why do the “powers that be” push for these scores? I’m always open-minded to someone like Peter. He missed me with this episode.

[ogopogohunter]

Getting big money out of politics and eliminating regulatory capture would be a great start on bringing ethics to business.

[Wheelofbibfortuna]

The fact Philip morris has an esg score of 89 and Tesla is like a 30 says everything about its legitimacy

[Doncergio]

WEF can’t be just a party if euro governments are allocating substantual funds to let the organization operate within the country.

[derekmondelli]

No notes on ESG 'scores/rating agencies' who are claimed to be kicking this can along?

[s.d.]

The real problem is that it isn't the companies deciding to do better at what ESG promotes. It's a few companies pushing it on them by making it harder to borrow money. The end result is many companies will just start running more of their companies on cash, where they dont have to borrow nearly as much, simply so they don't have to jump through all the ESG hoops. The one's that do go along with ESG will do just enough to make the metrics look good, never mind actually having a good effect. In the end it, a few of the metrics that ESG promotes will improve (the importance of those is heavily debated), while numerous other metrics will be significantly harmed (not just profits). Those that like ESG will feel good, because they "accomplished" something.

[matthewaustin]

I believe this is the first of Peter's videos that I have ever seen where I felt mistrustful of his take on the subject matter.

[mjawp]

This is the first time he has made me sit back and question his analysis....perhaps it is outside his wheelhouse? Not a geography/demographic centric topic....hard for me to take him seriously (on this topic) when he laughs off the WEF. Have been following PZ for a while and have read his books and love his general analysis: clear, concise and relatable.