What is ESG

[2rings]

Is this just the new and worsened version of Affirmative Action?

Are they using it to promote specific segments while blocking other segments from advancing?

How is it treating your future opportunities in life? (Positive or negative)

Are certain cities and states pushing ESG harder or lighter than others?

 

[2rings]

Where did ESG originate from?

Was it developed in South Africa before being brought into our once great big cities in the USA?

 

[FlirtLife]

I thought ESG (Environmental, Social, Governance) started with investing. Governance in this case doesn't mean "the government", but corporate governance. From what I can tell, environmental means a fund doesn't buy oil company stock (e.g. Exxon). Finally, "Social" seems the vaguest of the three. I'd suggest people buy index funds instead of ESG funds.

I have two main problems with ESG. First, not buying Exxon stock doesn't do anything. Exxon isn't watching out for this measure, and they wouldn't know why someone didn't buy their stock. One mitigating factor is that large ESG funds may get the ear of Exxon's CEO, which can influence them. Second, I think direct action and contributions (to charity) matter more than picking an ESG fund over an index fund. It's too easy because it isn't doing much, which lets people off the hook to actually do something meaningful.