ESG Ratings Are Not What They Seem 

Learn more about MSCI, the largest ESG rating company: www.bloomberg.com/graphics/2021-what-is-esg-investing-msci-ratings-focus-on-corporate-bottom-line/

ESG is why every company went woke at the same time. They care more about institutional investors than customers.

I want a list of companies that aren't complying with the ESGs so that I can use their products and services.

So, basically one rainmaker like Blackrock can control the entire planet politics with ESG and without going into details or without talking to anyone in personal, pretty brilliant.

This is some really terrifying, Orwellian stuff.

This video is brilliant. Companies hide behind ESG without meeting the main goals of what ESG was created for.

ESG is just another term for social credit score. And no, you cannot change my mind.

These bloomberg QT are some of the most enlightening videos on the world of finance, I always learn something new or at least obtain a new perspective. PLEASE continue this high quality content!!

So, ESG is just a trick to get a higher MSCI credit for a company.

Green is the new market gimmick to make more greens.

Glad to see a major media network call out a major financial influencer

Call your state legislators and tell them you are against ESG Scoring and they need to make laws against it being used

It's just a way to oppress those that aren't loyal to your sick goals, or that could be competition.

We should be rating companies for other more important things, like how healthy are the products they are selling.

This was one of the best bloomberg pieces ever. Keep it up reporters, i respect reporters even more now.

This is horrific.

If an ESG score is subjective and unregulated, why would it have any value with investors?

I refuse to believe that the average Joe or average business owner pushed for the ESG ratings

Confirming my suspicion that ESG is just another corporate gimmick.

Gaming ratings is not new, all of finance does it, they're just shifting their skills in adjusting conclusions towards meeting financial KPIs to ESG KPIs Thank you Bloomberg QT team for pointing out the game

Fabulous! Thank you for the info. I love this style of mini docs.

Excellent investigation

LOL when every time you hear the words ESG and SUSTAINABILITY you notice things like "your score is higher if you support women who used to be men" or "why does every product with SUSTAINABILITY written on it contain CRICKET FLOUR (BUGS)", SOMETHING IS WRONG with ESG and SUSTAINABILITY.

The only environment they care about is their own environment.

The reason why scores change that much is very very simple... The initial scores are based on public information, and rating agencies anlayze specific wording, most companies don't know this, and don't disclose every piece of information online. Even if they do so, they have no idea what are the requirements for rating agency methodologies. The entire score is a process of feedback rounds, and internal information exchanges, they sent documents that are not online, and so on. While rating agencies are adjusting the scores based on relevance and industry impact.

This is an amazing investigation. Please create a playlist of such high quality investigations, it will make it easier to share it with others.

Well its ESG, they could focus on the S and G and still meet their mandate . Hence defining esg is key

The world is full of foxes whose outsmarting the lambs.

Thanks guys. It shed new light regarding this impirtant issue.

Boycott all ESG companies , they all need to feel there bottom line disappearing

ESG is woke Shibboleths!

This is kinda scary

Brilliant content.

Right, all companies should follow some journalists’ moral guidelines when doing business

This video is simply brilliant

This seems to highlight why tracking Scope 2 and Scope 3 emissions is so important, just as one example of where these ratings fail. Companies like McDonalds don't own the cattle raising operations that they purchase from, so they can technically claim no direct impact from those operations.

I appreciate this investigation but Bloomberg the company provides financial information on stocks to the general public and industry so if they really believe there is a problem with these msci ratings, they should not promote them on their website, indexes, and Bloomberg terminal. They're a giant influential company. They're part of the problem and yet they put out this piece of journalism as if they're saying "well we did all we could" 🤷

This was really unbiased and fair take on the problems of ESG.

eye-opening. I don't understand how investors would still believe in MSCI ESG ratings when that man blatantly implied publicly that it isn't really about environment or social issues but just another way for companies to continue being their oblivious-selves while keeping any regulatory eye away from them.

I am currently studying ESG rating and I must say that this video by far was explained well. Something I would like to add here, many companies in the first hand are not aware of ESG and the value it can generate shortly. A framework and transparency is much needed.

This is what we need. More awareness. Thanks Bloomberg QT.

Constant references to ESG and I'm here sitting and thinking 'what the hell is ESG?' It's not until after two minutes that the abbreviation is actually spelled out, albeit not explicitly, and even then no definition. To actually understand this video, you need prior knowledge of ESG. This is unfortunate.

I have worked hard for 35 years to build my investment portfolio. The first and foremost strategy I employ to protect my investments is to avoid companies with ESG ratings and goals. I prefer companies that are mostly concerned about profits, and strive to stay out of globalist politics.

The global economy cannot be optimized on that scale with that approach.

It's also related to social governance so comparing those metrics to environmental ones doesn't allow for a fair representation of ESG measures

So who's going to make sure these ESG raters not receiving bribery?

Dystopian

Should have led with the disclosure.

You're telling me you can take advantage of people's values and laziness? When did this happen?!?

Unregulated indeed

ESG is about power and control over you!

Fantastic video!!!! This ESG … BS has been something I’ve been studying since I found the definition. I work for a huge worldwide company that went full on ESG about 8-9 years ago. In my plant it’s been devastating to productivity ! Thus devastating to profits!

Thank you for this deeply informative video.

Extremely important take on the impact and misleading title of ESG ratings. Really concerned about how the regulators are going to respond or can change anything substantially in the next years since time is running fast

You just need to see the MSCI intervention on minute 7:38 to get the whole picture....this video is 100% supported past that moment.

sooo important. lesson learned curve MSCI

We've already crossed the 2 degree Celsius mark and in the world of capitalism, we never know where the money's going and this inefficiency has dried out our lands, polluted our waters etc. which are public goods and by no means anyone's property to destroy.

Ok... so I was expecting it to be some niche billion dollars company I'd never heard about... but it's FUCKING MSCI.....

H&M Conscious… just BRILLIANT marketing!

Shell has an AA rating

Nothing on the payment(profit) for order flow mirage

What a nightmare this is

ESG is BS.

Another reason why ESG doesnt work? How can a cigarette company have one of the highest ESG rating while a company like Tesla be one of the lowest?

This was a very informative video, it touched on ESG in a direction I wasn't paying attention to - which is the 'E'. If ESG scores can be set and changed so arbitrarily then eventually the only incentive for companies will be to obey those who make the ratings, rather than focusing on any supposed 'change'. This is of course disregarding the question of whether or not these scores--which are dictated and enforced by an extremely small group of billionares on the rest of the market and society--should exist at all, personally I think not, they seem disconnected from a companys profitability and assumes that it's ratings and metrics make a company better, which is insane and baseless.

my takeaway from this is to pick companies highly rated by, say, corporate knights, but that actually are involved in sustainability. this would certainly NOT include companies like mcdonalds. why anyone interested in SRI would pick a corporation whose product is a major source of health issues is beyond me

ESG is another psyop

ESG, is politics and shouldn't influence markets. It should not withhold capital from carbon energy or nuclear based on their desire to control global energy and, hence,, food and everything else.

Of course McDnalds declined to comment on their crookery.

Great video! Thanks for Bloomberg QT team for revealing the game the MSCI is playing. I am about to start my career as an ESG research analyst soon. This is a lesson I need to learn.

Can anyone tell me how a ESG score can allow public companies to put on outside ( family friendly events)Drag Queen shows ? I wonder how many points you get to raise your score. If one likes that stuff, it should be , behind closed doors. Some one needs to host a family friendly event. But the show’s are Female and male (real by nature) pole dancers. I wonder how much their score would go up. I welcome any comment’s.

Great video! There certainly is a correlation between the individual ratings for a company and it’s Score. But the E - Environmental part is way too small. Interesting video idea would be to look at climate strategies and how „serious“ the companies are actually about it. Most of them seem to make a big hype about it, while only reporting on a few % of their entire emissions

Morgan stAnley yeah ! Gotta buy that stock.

I may have missed it but did Bloomberg disclose in this piece that they also have their own ESG rating system?

You know that ESG scores are a scam when Exxon has a higher ESG rating than Tesla. The EV industry overall is loved by progressives, but because Elon Musk is Tesla's CEO, their ESG rating takes a dive while Exxon Mobile has TV ads with butterflies.

Mickey D’S: c’mon la Portugal 🇵🇹 Is small country la. Upsize…I mean 😢 upgrade me la

Maybe I'm wrong but, at the end where it says Bloomberg LP has partnered wity MSCI to create an ESG index...isn't that basically saying "ESG isn't actually helping anything but also invest in our ESG fund"?

What is a better rating system than MSCI?

ESG is their virtue garment. You can’t question a companies mismanagement, the way they might crush a workers movement or exploit cause chaos if they are wearing an ESG garment. For example when Exon has a better environmental rating than TESLA it is a “lady doth protest too much” situation.

If only they could make meaningful measurements. Hybrids are better for the environment by far than fully electric vehicles, and yet Tesla is viewed as a green company. Local sourcing and manufacturing is far better for the environment than shipping everything from Asia. So are American-made products getting a better score? Then there’s planned and designed obsolescence which Corporate America engages in relentlessly. Apple is a prime example with the way they make more and more pieces of products unserviceable. Their cpus, video cards, and memory chips are all soldered to the motherboard so if one item fails, you have to replace the whole thing. Their AirPod batteries can’t be serviced so instead of replacing a $1 battery, you pay $100-180 for a new set. And they’re a “progressive” company. And many, many companies do this. Just think of the phrase, “They don’t make ‘em like they used to.” We’ve broken a pair of kitchen shears, then after losing another, my grandmother gave us her German-steel wedding present kitchen shears (from the 1930s or 40s) and they are incredible! But someone is loathing those shears because it meant we aren’t buying ten new ones over the course of our lives now. You don’t have to make the best possible, you just have to make a better one than your competition. Now let’s move to racism. Is it more racist to have an all white company when you’ve hired based on merit, or to have a quota system where you have hired based on skin color. Which one is actually less racist? I can tell you the all-white one fits MLK’s dream more than the quota system. So the first step is to actually define “better” and then determine how you measure it.

The ESG ratings fall on their face when you look at Tesla.

Bloomberg is a rating agency

ECONOMIC FACISM!

Also.. who rates ESG firms like MSCI?? Or are we to believe that MCSI "always lives up to" its "ESG standards" 100%?? That there's ZERO hypocrisy or double standards on their part w/ regard to their own corporate behavior and practices?? hmmmmmmmmm Like... does MCSI *actually put ITSELF within the "esg ratings" on its site*, like we're to "believe" that they "found ourselves to be adhering to the standards"?

ESG - Extra Stinky Garbage! It will negatively affect profits. The money to be made on ESG will be as an ESG consultant or ESG Auditor. Also, ESG Officer. This officer will probably be the DEI Officer or in the same department. Another non value added position. Could also make money off the outsourcing that will happen as they try to get rid of their not ESG friendly parts of their business. This is more like bullying corporate America. Every ESG report I have read pushes DEI.

So is ESG the problem, or is greenwashing the problem? Investors should educate themselves on ESG disclosures like they do financial disclosures so they can’t be tricked by fraudulent claims. The SEC is working on rules for mandatory and standardized non-financial reporting, which should help the problem and democratize ESG data.

Either ditch esg or ditch billions in your market value, corporations. Your choice.

i agree with the report, but the issue with what is the solution. How do we pick the best fund to reduce carbon. i have been trying a true legit fund that slow down climate change.

ESG is doomed to fail..we need a list of companies that are non complying to this mess of ESG so that we can support them like TESLA

You cannot have Sovereignty & capitalism if your purchases have to accommodate a society across the globe. And you know that the USA would adhere ridiculously, and many countries such as Saudi Arabia & definitely China would not. Also we already see the disastrous results facing Chinese consumers.

What ESG stands for?

This has absolutely nothing to do with capitalism, it's about total control of you

Corporation, capitalism, communism, China version 1970s

I call bs

it's a racket, RICO Case in the future.

This video is a video from a sham industry about a sham company not enforcing sham policy on the people who pay their bills. This emphasis on carbon is just a way for the top businesses and nations to keep the up and comers from being able to compete with them in a fair and open market.

so sad

Tesla has a lower ESG rating than ford....

9:10 yeah he means fascism which by definition is gov rule by corpos lol

The ESG system will only support profit and control. I don't want bankers and government tracking everything I do, and I don't want the companies I spend my money with to participate in the ESG system though almost everyone is on some level. Avoiding it is very difficult and impossible so much of the time. We will be like China if this is allowed to continue, and the digital currencies will be the nail in the coffin.