Is ESG dying?
From state governments to financial institutions, the list of entities abandoning the woke measurement is increasing.
You can add Vanguard to the chorus of banks ditching the environmental, social and governance (ESG) initiative.
Tim Buckley, the CEO of Vanguard, told the Financial Times:
“Our research indicates that ESG investing does not have any advantage over broad-based investing.”
He confirmed that he had left the $59 trillion Net Zero Asset Managers initiative, telling the newspaper:
“We don’t believe that we should dictate company strategy,” Buckley added. “It would be hubris to presume that we know the right strategy for the thousands of companies that Vanguard invests with. We just want to make sure that risks are being appropriately disclosed and that every company is playing by the rules.”
Overall, Buckley thinks ESG does not offer any advantage over broad-based investing, like index funds.
Hopefully, this is another nail in ESG’s coffin.
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