Climate-denying GOP needs crash course in capitalism
By Michael R. Bloomberg / Bloomberg Opinion
Republican elected officials seem to think theyve found three new evil letters to pair with their favorite bugaboo, CRT, or critical race theory. This one is called ESG, which refers to investment strategies that consider environmental, social and governance issues. Critics call it woke capitalism.
Theres just one problem: They dont seem to understand capitalism. And flogging ESG is not only a terrible economic mistake. It will be a political loser, too.
Republican critics of ESG have focused primarily on the E, arguing that climate change should not factor into investment decisions. Texas has adopted a law restricting the state, localities, and pension boards from doing business with financial firms that seek to limit their exposure to fossil fuel companies. Even firms that have large investments in fossil fuels are being banned, if they dare attempt to price climate risk into their portfolio allocations. Oklahoma has enacted a similar law, and other Republican leaders are moving in the same direction. Last month, Floridas Republican governor, Ron DeSantis, supported a resolution barring pension fund managers from considering ESG factors.
All these anti-ESG crusaders position themselves as defenders of the free market. But they are attempting to use government to block private firms from acting in the best interests of their clients, including retired police officers, teachers and many others who depend upon public pensions. And in doing so, they are turning the most basic investment rules on their head.
https://www.heraldnet.com/opinion/comment-climate-denying-gop-needs-crash-course-in-capitalism/
Biophilic
(3,666 posts)Be for a company not to take environmental issues into consideration when trying to figure out how to make more money. But the best part is pushing for free markets while restricting them with government regulations. What could the motive be?