The Rise of ESG on Wall Street

Over the last decade, there’s been a profound change in the ways corporations interact with society. Gone are the days when large multinational corporations were just soulless profit-making machines. Instead, these days businesses are trying to give back to society, donating millions of dollars to charities and actively engaging in widespread social movements. At first glance, it's undoubtedly a noble pursuit; but dig a little deeper, and you’ll find a much darker side to this story. Because behind the scenes, an entire industry on Wall Street has been propped up to inexplicably sabotage this growing movement, turning it into a profit printing machine designed to line the pockets of select financiers and corporate executives. It’s a story of unparalleled greed and perverse incentives; one that’s easily overlooked and often underreported despite its far-reaching consequences for our society.

Today, companies are constantly scrutinized on their ESG performance, with many companies plowing millions of dollars into business plans that promote these environmental and social ideals. But some of the strongest supporters for the ESG movement come from an unlikely group of proponents, Wall Street bankers; a corner of our economy not typically known for their interest in societal well-being but certainly known for, well, you know, making money. Despite this, many bankers have uncharacteristically called upon companies to do more than just generate profits and instead contribute to society at large.

And this all sounds good, right? I mean, why shouldn’t we reward good corporate behavior? But is that really what’s going on here? Why is Wall Street suddenly calling upon companies to prioritize societal well-being over profits and encouraging investors to make their voices heard by investing in companies whose business practices adhere to ESG values? So, in this episode, were going to take a look at what’s really behind Wall Street’s sudden interest in the ESG movement, who ultimately stands to benefit from the surge in demand for ESG investing, and why the very idea of a company’s commitment to ESG might not actually be everything it claims to be.

Chapters:
00:00-04:18 The Dawn of a New Day?
04:18-14:42 BlackRock’s Golden Ticket
14:42-24:22 Rating’s Obfuscation
24:22-29.37 A Societal Placebo

[BetterSubstance]

Crazy how you only have 1000 views. Looks more like a video with millions of views and subs. Great insights for real 🙌

[Turbocrow]

I thought I was watching a Bloomberg or FT report, this channel is going places!!

[OrangeGuy]

Amazing quality video, deserves way more views

[dubtingThoms]

If only they'd have an ESG for the ratio of CEO to worker salaries, somehow i don't think they'll be adding that

[nb]

Great eye opening content. Very informative. Thank you!

[pingupopp]

I really hope we get to see more regulations around the term ESG, that is the only way to actually hold people accountable. We can also hold companies like BlackRock accountable for using deceitful practices that way. Thank you for making such an informative video!

[jacksanders]

thank u for high yield on tobacco company stocks esg ppl!!