That's one of the big problems with this dumpsterfire of an initiative. Company resources devoted to business activity that does not contribute to the bottom line.
The question on ratings was dodged. How are the ratings arrived at - what specifically do the ratings agencies look at to ensure they are being consistent when calculating the scores? It seems incredibly subjective to me when there are no compulsory reporting metrics, how can you know what a business may be hiding and what it is publishing purely to boost the score? KP
It is subjective to the criteria of the ESG rating company! And most of the time these companies are not 100% transparent about their exact methodology
Hey guys - I'm an academic (post-doc in Env Sci & Sustainability) transitioning into industry, so it was v. interesting hearing Dave's thoughts. Took a glance at the comments (wow), and it's clear that there seems to be a mistrust of ESG, i'd love to see a video/discussion on this :)
@@Springleaf. just check the charts, compare the SP&500 vs SP&500 ESG. from the creation of the ESG index. and see how poorly performed through the same time span comparatively speaking.
Any businessman that don’t want to fail should stay as far away as they can from ESG and look for alternative places to get a lone because ESG will destroy your business! Things are simple, you hire the best person for the job regardless of sex or oder non job related characteristics, you make a contract with a waist disposal company thing that are anyway heavily regulated and the most important you trie to give you’re costumers the best service or product at the lowest price possible without pandering, telling them there bad people because they have les melanin, you don’t change things they love you don’t push for socialism, censorship, defunding the police, you don’t donate money to rioters, terrorises organisation and you’ll be fine!
Correlation does not imply causation. The fact that Companies that have implemented more ESG programs have also preformed better financially is not necessarily a direct result of their implementation of ESG programs. The correlation could just be a consequence of the fact that only better performing companies have the additional resources to spend on as many ESG initiatives. There are of course indirect financial gains that obviously come from this. For example, there are companies that already have more resources to create a bunch of initiatives to increase their ESG score. Then they are able to security more capital at better rates relative to their competitors. So I can see why big companies really embraced all this stuff as they can use various Woke Guilt projects to shame their competitors out of being able to attain the capital financing they need in order to sustain their buisness.
Please help me with this question. If my company wants to start with ESG I would pick the number of and kind of metrics my self?! I would also pick what I disclose? And based on that score Investors than can invest in my company if they so choose to use my ESG score as a indicator of my companies health?!
@@jamesbyrne9312 Large corporations can buy "carbon offsets" that are inaccessible to small businesses and carry on as usual while the small businesses get shut down.
