WATCH & LISTEN >>> Yesterday’s episode of On Air with Heritage Action was all about ESG.
ESG stands for Environmental, Social, and Corporate Governance and it’s the progressive Left’s new way to coerce companies into adopting woke policies. But let’s start with a little background…
ESG is a set of criteria that some investors use to analyze prospective investments. The problem with ESG is that its components are subjective and easily manipulated to advance Leftist ideology.
Here’s how:
- Environmental: Companies that do not embrace green energy as its corporate strategy will get their ‘environmental’ score reduced. That means American oil & gas companies will be punished for not pursuing Green New Deal policies. BlackRock is already starting to do this…
- Social: Does a company have enough Diversity, Equity, and Inclusion training? Does a company support abortion? Does a company provide free sex reassignment surgery? These are the types of woke questions that will determine a company’s score in the ‘social’ component of ESG. Social credit scores will be the norm.
- Governance: How diverse is the company’s board? Are there enough women in leadership positions? If the answers to these questions aren’t to the liking of the Left, the ‘governance’ score for a company will fall.
If individual investors want to assess their investments using ESG, then they can. But, when major institutions start incorporating ESG, Leftist ideology will run even more rampant in the corporate world.
For example, S&P Global is a global powerhouse that issues credit ratings for governments and corporations. Credit ratings are critical because it gives investors an idea of whether or not entities can pay back their debt.
Recently, S&P decided to start publishing ESG scores for U.S. states.
If credit rating agencies start using ESG to determine the creditworthiness of all government entities and corporations, then these institutions will be strongly incentivized to implement more and more Leftist policies.
Fortunately, some lawmakers across the country are speaking out and passing laws to combat ESG discrimination. But it’s important to keep this issue at the top of mind, as it's set to be another battleground against the Left.
>>>If you live in Oklahoma, visit our Action Center where you can contact your state legislators to support a recent bill combatting the ESG agenda