ESG

ResponsibilitySea327

Yep, virtue signaling at its finest. Got to get your ESG rating from somewhere.

throwaway_0x90

Everyone draws the line somewhere. I don't think it's fair to ridicule those that support ESG. Also just FYI I never even heard of this term before until this post so I'm not saying I'm some hardcore supporter. I just don't think it's fair to go labeling it "woke nonsense".

Delicious-Swimming78

Obviously these ESG funds aren’t saving the world however there must be some limit to what you’re willing to fund..? I’m sure we can think of a few extremes where you’d draw the line.

EnvironmentalCry3898

florida man mad at ESG funds of real estate. meanwhile fort meyers gets washed into the ocean. what is right? seems like a good plan, but I am regarded.

kaptainkrollio

Esg funds have outperformed the SP500 over the last decade. Most are just a tech heavy SP fund. It's fine if you don't want to invest based on the name, but reality is ESG is a branding tool like "gmo" or "organic" which is loosely defined and gets people to pay higher management fees. But you can't get worked up and deny the actual performance of the funds (broadly) or you're just being the political one. That said, it's funny when people argue that energy policy should be left to the free market, then whine when companies incorporate climate risk into their strategy. Ask any insurance company.

PAPRHNDS

Not investing in a shitty ESG fund doesn't mean a person doesn't have morals. Take your unfounded morality and pound sand with it. You're not better than anyone because you virtue signal, and of all things, for ESG funds.

Various-Stomach-1286

Best move ever. Why finance ceo/board hostility towards share holders by woke hypocrites?! Pensions are literally failing their fiduciary duties by investing in these companies when the mandate is for maximum gain for the plan. Not placating some easily offended woke leftists. Pushing ESG is a lie.

Rare-ish_Bird

FLORIDA TREASURY TO DIVEST $2Billion BLACKROCK HOLDING DUE TO ESG STANCE That's why you can withdraw your funds today.

Risk-Option-Q

Overpriced by a lot 😆. PEG is 2.03, stay away until it drops. It's not even a good ESG Investment.

joe-re

1. Warren Buffet didn't get where he is by just keeping his money. Even though his performance has declined. 2. Very very true for WB. 3. The big stars invest what they believe in and clients trust them. If you don't like the style of one star, you can chose another. WB is obviously very US centric, but ESG isn't his thing. If you don't like the US, go Dahlio. 4. WB (or Peter Lynch) aren't basing their investment on macro cycles. I think mixing some of your portfolio to reflect what smarter people think is a good idea. Just because 20% of your portfolio has the same stuff as BRK doesn't mean you are bound by it.

innnx

Ok. 1: Some of them are not looking for growth, but rather keeping their money. 2: They are limited to what they can buy due to their large portfolios, therefore they must usually stick to large caps or their position will basically buy a company. 3: Most of them have clients that are looking at stuff like ESG, country of origin, workers condition, sustainability etc. 4: People have different outlook of the macroeconomic situation. Some believe we are heading for a huge recession and will position their portfolio to reflect that. Others believe differently. So no, you should not copy wealthy investors directly. Of course its nice to get ideas from what the big dogs are doing, but copying them is really not smart given the vast difference is life situation, portfolio situation etc. And that's where retail investors have a insane advantage; they can basically pick any stock they personally like.

SpicyLatinaCumfarts

This bear market better bankrupt all these uppity zoomers that CNBC profiles making 420k per month on iNfLuEnCeR siDe hUsTLe bullshit All zoomers deserve to be poor for pressuring companies to be ESG/woke. Reap what you sow, tree-hugging commie kids.

deadjawa

ESG and green policies are dumb, but way overblown in the oil market compared to unit economics. People these days on reddit, in the press and etc are just looking to drive engagement, so they come up with vapid political narratives to drive influencer points. Important to look beyond this. The reason western countries haven’t invested in exploration in the last 10 years is because they got smacked by opec and caught in an over leveraged position In the last decade. There was a gold rush for fracking, and it created a lot of losses all across the supply chain. So this time they are being a bit conservative. But they are still expanding production, and have been for some time. We will cross an all time high of production in the US next year. Meanwhile demand is going flat or shrinking. This will absolutely create a crash in oil prices at some time, probably next year. And probably brought on by settlement of war in Ukraine. So I would stay the heck away from the oil market. There is a LOT of speculation going on right now on wars and inflation, and there is way too much oil in the world right now - the only upside argument is that the political situation gets worse. Because the economics paint a dismal picture on oil.

baeconundeggz

Haha... yeah... this whole ESG thing is just rife with hypocrisy.

nutfugget

what's funny is that AAPL is the #1 holding in the Vanguard ESG ETF. given their gross violation of the Social & Governance aspects, will they be removed? 🤔 Answer: NOPE 🤪

Rare-ish_Bird

Thanks for the coherence. But what about lack of financing in the oil patches, due to ESG and green policies? Western countries aren't investing in new production because banks aren't financing, at least to allow for 35$ fracking. I think OPEC sees China demand declining precipitously and US's ability to bring new supplies online as limited rn, so will keep cutting production to keep prices artificially high.

baeconundeggz

Yeah so tired of this BS ESG company and all their shit that's made in Ghyna.

fond_diagram5

All signs points towards the merger getting done. If the warrants were $1.00+ or even $0.60+ I may feel differently but these warrants are just too cheap imo for a viable long term play with ESG tailwinds

btcoins

Honestly? Tesla puts by far. Ever since elon even wanted to reinstate free speech on Twitter the system fought back and got him scoring not even top 1000 on ESG while Exxon is top 8 while fracking for oil… oil vs electric cars…. And on top of oil it’s fracking…. Says a lot about the “environmental score”. Bill gates has hundreds of millions short on Tesla and doesn’t even plan to close until he sees it at 0 or close to that. He’s had them short for a long long time too. He can afford it & it’s just a matter of time until his wef buddies and taxpayer dollars start shorting Tesla too.

baeconundeggz

Lol... they got away with this Ghyna shit for so long.... More ESG hypocrisy.

sinncab6

Wow fuck that your ESG rating is terrible you misgendered people in the first few words.

Buffalo_Man_0

There’s different views on ESG investing. If you want to go that route, I recommend you do your own research rather than relying upon a company that gives out ESG scores. Secondly, i would dig deeper on what your goal is. For instance, do you want to keep your money out of the hands of companies you deem unethical? Or do you want to help people? You could invest in whatever companies you want and donate a portion of your profits to the specific causes you find most worth.

LCJonSnow

Investing in a company that operates in an area rife with child slavery, knows it's rife with child slavery, yet doesn't control to make sure it sources child slavery free product is unethical. And yet Nestle is held in ESG funds...

np8573

Ethical investing is not novel. ESG is a huge movement. You can track companies, money managers, and others that already invest and understand what goes into their rational. You could also simply invest in products (ETPs, etc) that claim to be ethical. In you're investing directly into companies that meet your criteria, I'd say that ethical behavior is a spectrum and a grey area - so beware that it is hard to even define ethics. For example, 6 weeks ago, the world was convinced FTX was on the high road relatively speaking amongst its peers.

vincekerrazzi

The common way of going about this is investing in ESG funds. However, I’m a bit jaded with this approach as ESG feels like a bit of a scam to me. The approach requires high fees based on admin, research and redistributing and tend to make the appearance of the firm offering the fund to be skimming off investors attempting to do the ethical thing. Take a look at https://fossilfreefunds.org/. I wont say that fossil fuel related business are the only unethical companies, or entirely unethical on their own. However, this seems to be a decent approach to what you’re looking for. Good luck friend, and thanks, if nothing else for caring.

HypnoticStrix

Actually exploration CapEx has been way down for almost a decade now. The oversupply from the shale boom and ESG pressure being the main culprits.

Risk-Option-Q

Here's my strategy 1. Pick Industry and company I like 2. P/E Ratio 3. PEG Ratio 4. Compare with peers: profit margins, cash flow, debt-equity-ratio, dividends, buy ratings, and ESG scores.

JollibeeNo1Customr69

Personally I'm really loving this year. The higher interest rates, QT and the end of the era of cheap, easy money is going to send so many arrogant, bloated, overweight, overhyped, dogcrap companies, philosophies, markets and ideas that we've been peddled for the past 10+ years down the f'ing toilet. This is seriously going to separate the wheat and chaff, and things like Big Tech (eg Netflix, Meta, FTX), China, Blackrock, Cathie Woods, ESG investing, Buzzfeed, etc, all these airie fairie scams, bubbles and other assorted bullcrap are going to get filtered on the other end of this tightening cycle HARD (assuming we sustain this monetary environment according to the Fed's current trajectory). Historically low interest rates and cheap money has always led to a high proliferation of scams and money schemes, like Charles Ponzi in the 1920's, as people look to park their money somewhere to join in on all the assorted bullruns happening, and this era was no different, just on a MUCH grander scale with all this crap we saw during the last decade and especially last year- from the vast majority of bloated Big Tech companies, to cryptocurrency, to China and Chinese stocks, to multimillion dollar garbage real estate in some ghetto American suburb, to student loan debt- all this worthless trash is no different to the old Ponzi schemes and Greater Fool schemes of the 1920's and its all going to blow up and come crashing down in a glorious sh!tshow and I can't freaking wait. A lot of people who thought they were hot sh!t and the big shot callers of the past decade+ are going to get a serious wake up call in the next few years. Yes, I love these high interest rates, and I hope we make and sustain a 5%+ EFFR for years to come. It's long past due for some people to come tf back down to Earth and get in touch with reality again.

Beast0045

In many cases today corporations make more profits that meet esg standards. Typically more efficient uses of materials, energy, water, etc. Yep thats it. Anyone who calls it bs probably never existed in a world where they had to pay for anything. I mean would you improve insulation in a home if it had a payback? Rooftop solar if it saved you money? LED lights? Water use efficiency at manufacturing plants. Its all been done for a long time its now just called ESG.

Metron_Seijin

This is exactly how I feel. ESG is a very personal rating. It will be different for everyone and people should be doing their own research into whats important to them, for each company they invest. Absolutely do not trust someone else's ESG ratings score. If a company brags about their generic "official" score, its more likely they are crap. Its obscene the amount of companies that pull out their ESG cards when they are the farthest thing from it.

Risk-Option-Q

It's an apples and oranges comparison. The governance section is the only one that's not industry specific. It's best to go to the actual source of the ESG ratings rather then learning from biased sources. Now, ESG funds are a different story all together and typically underperform compared to non-esg funds.

LCJonSnow

ESG is a thing, but some of the measurement is terrible. I remember looking at ESG funds that held Nestle ( buying cocoa produced by slave labor, their formula in Africa antics) or Apple (see Foxconn issues), but God forbid you buy a weapons manufacturer like Lockheed that can only sell to countries the US approves, or an oil company like Exxon that provides an absolutely vital raw material. So much of it is someone else’s morality.

DoubleyouEssBee

If a company's ESG scores go up, then it is approaching the End of the Stock's Gains.... In all seriousness it basically just means the board believes in spending shareholder money on their own personal political opinions. High ESG means more money wasted on stuff you may not even agree with. I don't go out of my way to look but if it's a company I'm meh on but still considering then I'd count a high ESG score against it.

Sust-fin

So they can charge fees to recommend ESG investments

420BongHitsForJesus

ESG is more liberal bullshit

shortcakenerd

I ignore it entirely. It's not a classic asset class for diversification. A well diversified portfolio will naturally incorporate ESG to some degree. I think it's not important in the decision making process and fraught with political influence.

Krazybob613

If they tout their ESG scores I take my money away from them FAST. Dumped Blackrock as fast as I could when this shit started. Now I read the company prospectus very carefully, and Vote NO on every director that has supported this BS!

no_simpsons

well, european companies at least who have higher ESG scores have access to lower interest rates from lenders, I believe [https://www.cnbc.com/video/2020/02/26/chamath-palihapitiya-esg-investing-complete-fraud.html](https://www.cnbc.com/video/2020/02/26/chamath-palihapitiya-esg-investing-complete-fraud.html)

Risk-Option-Q

Tesla has a higher overall rating of A and Exxon has a lower BBB rating. So at the onset you're wrong but each industry is rated by different factors because not every industry is the same. Exxon would need to be compared to Chevron and Tesla to GM for a comparable comparison. You wouldn't compare Exxon's and Tesla's financial statements, same goes for ESG scores. Use ESG scores as just another metric to help asses long term investment value. Most people complaining about ESG don't understand it.

Equal_Pumpkin8808

ESG has been around for awhile, but they're pretty easy to game which makes them borderline useless.

No-South3807

Blackrock uses these scores as a way to get corporations to improve their ESG scores by investing or not investing in them.

FlaGators96

I mainly ask because I don't know what brokerage y'all use, but mine (Merrill) sends me my ESG portfolio score once a quarter and how I can improve, etc. Seems as if these ratings just came out of nowhere the last year or so.

Next-Ad3054

If a company is focused on the ESG score then they aren’t interested in making money for shareholders.

MoonShots4Connor

Just as long as they have good ESG rating that is all I care about. FTX had better ESG for corporate governance than Exxon lol. Men can have babies and its acceptable to teach kindergartners about porn. Even the most corrupt countries have some form of dignity. We are beyond corruption, we just do it out in public. Enjoy posting ur thoughts here because in a year or two every forum will be like yahoo is now where comments have to be approved.

ankole_watusi

These things have ESG scores that are anywhere on the chart?

TimelySuccess7537

Well the stocks are also heavily affected by the commodity price. Also, when it comes to oil, the companies are facing ESG and other legal/tax issues.

DartFanatic

Anti ESG. Take Oil,Alcohol, Coal, Tobacco, Mining and equal weigh them.

sharpsandflats

By pushing ESG grift

VisualMod

>ESG is not a scam, but companies should be aware of the risks involved in participating.

SubstantialAffect835

ESG is a scam and companies should not participate. Thanks.

jesschester

Just wait until stakeholder capitalism gets momentum and corporations start stealing property in the name of ESG.

Risk-Option-Q

At the time of the initial post, I didn't know what factors played into it and I still don't know the reason/event GM has such a low social score. Feel free to keep scrolling and ignore the thread if it triggers you. No facts have been presented. Just opinions such as' "ESG is garbage".

NoRace5075

Anyone complaining about Tesla's ESG score is just an immediate identifier that they don't know/understand what ESG is.

baeconundeggz

Surprise... Ghyna beats its citizens... what a fucking revelation!!! Now go buy one of their phones... ESG hypocrite.

Risk-Option-Q

I really appreciate the sources. A lot of their arguments against ESG were probably valid at that point in time. From what I'm seeing now on the MSCI website, it's still a good metric to add to your list of looking at before investing in a new company and to monitor as time goes on. It's helpful to remember that ESG is three separate categories and going down in one category can lower the entire score. Key issues framework for each category: https://www.msci.com/our-solutions/esg-investing/esg-ratings/esg-ratings-key-issue-framework

zeppo_shemp

ESG is a scam, I don't care anything about the ratings

Risk-Option-Q

Do we know why? I'm all for changing my mind on the issue but I haven't seen evidence to say not to trust ESG. Do you have a resource or reference for me to look at?

Ehralur

Not a fan of GM, but ESG is a scam. Don't waste time contemplating it.

Risk-Option-Q

It's easier to shit on ESG then to actually learn about what goes into each category.

Sust-fin

They probably don't make enough donations to the right organisations. The same reason Coca Cola does so well on ESG despite that fact that their entire business is unsustainable and destructive.

redditor54

Well they announced that they want no part in the EV game for now (wise move imo). Plus the ESG score is a sham, Tesla also has a crap ESG score. Its a rigged standard.

fuscosco

> Nov 22 (Reuters) - President Joe Biden's administration on Tuesday reversed restrictions imposed under his predecessor Donald Trump on retirement plans considering environmental, social and governance (ESG) factors such as climate change and racial justice when selecting investments. Imagine watching them slam your money into something that had no bearing on the success of a company. They gave exxon a better esg score than tesla

ahsanahsan

March TSLA puts will print. Tesla was part of every ESG fund and had a lot of tail wind in that regard, it was dropped from the S&P ESG index last month so a lot of funds have to dump their positions. It’s also one of the last Cathy Wood stocks that hasn’t had a proper correction yet. They still haven’t delivered the truck 2 years later. From what I read their supply is slowly outpacing the demand. Even a day like today it’s barley studying green. Position: 3x 150P March 3x 130P March 3x 100P March Looking to double the position if we stay here/go above 170

Fuzzy-Bunny--

Im not defending Chapek...He kinda sucks...But he had an impossible job due to Iger installing woke ideology to placate politicians and ESG investors(thats gonna backfire). Iger pushed Chapek to the top of the ladder. It would take the next CEO 5 years and a supportive board to remove the bad woke leaders so good content could be made and then it will take 2-3 years after that to see profitability on streaming. That is 9 years in a best case scenario....9 years to be a company anyone wants to buy. Now you will need to worry about heavy shorts and big investors booking. Stock is off a few bucks in an otherwise strong day in the market...That is not a ringing endorsement of Iger and now that all of the morons who bought yesterday are out of the way, watch it bleed.

chrisplusplus

Their ESG score is lit AF though.

AP9384629344432

It's only as complicated as you want to make it. Fundamentally you basically just need ETFs to cover the world. So pick a total US stock market, total ex-US stock market, or just plainly a total global stock market. Any other product is there because the company that made it wants to earn more money through expense fees. The expense ratio on a total global stock market ETF is basically nothing, but it'll be 10 times higher for a semiconductor ETF or some ESG thematic ETF. Just pick the company (say Vanguard), pick the level of diversity (say US only), then pick the 100% US stock market ETF (in this case, VTI). That's it.

The_Saltiest_Ginger

Disney should serve as an example of the "go woke, go broke"/ESG bullshit is destroying corporations. Look at that jump just for replacing someone who put virtue signaling above profit. Same with PYPL.

AppropriateCinnamon

Is this some pump from fund managers under an ESG mandate? If you *have* to park billions in some green stuff somewhere, it seems like there are few options, as I don't think the smaller companies have the liquidity to handle it. From the retail side, this seems to be a case of irrationality outlasting liquidity, although maybe I'm just jelly from not jumping on the tesla hype train

seethecopecuck

How efficient would business get if blackrock CEO Fink didn't shove ESG mandates on everyone and business was free from outsider employee demands?

seethecopecuck

I think it was probably bloated by 3 Beckies when you just needed one. There's no way that massive group of content moderation wasn't the definition of bloated salary grabbing, ESG target numbers.

OilBerta

Great job on the gender diversity. ESG 10/10

Rik8367

Open a cheap investment account (eg one that charges 0% holding fee and transaction fees) and buy several world level ESG or SRI ETFS. These ones are a good selection: https://giveforgood.world/en/investments/

unfixablesteve

I want an ESG fund that’s total market ex Live Nation.

moondawg8432

FSLR is so gay. I bet blackrock owns the company by now after having bought the entire float to prop the ESG score

KingCuckTren

*ESG investors downvoted this*

partev

[Environmental, social and governance (ESG) investing is a fraud.](https://www.wsj.com/articles/sam-bankman-fried-esg-truth-teller-ftx-cryptocurrency-crash-11668723808)

HypnoticStrix

Due to misguided ESG policies and the cyclical nature of the commodity, oil companies have been underinvesting in exploration for years and reserves have not been replaced at the rate they are being consumed. Crude prices now are currently lower than where they were pre-Ukraine invasion. The sanctions didn’t reduce oil production; it just bifurcated some of the supply. US inflation is lower than it should be because we have the reserve currency and recent rate hikes have made the DXY soar. We are literally exporting a large portion of our inflation right now due to FX effects.

notapersonaltrainer

Logically we should kill all farting animals starting with the lowest utility first to reduce emissions. High utility animals like cows should be last, even after dogs & especially cats. The cow hating ESG people will protest because it's never been about carbon (they're almost always also anti-nuclear). It's almost always a front for some ideological vegan or political agenda.

Mjzzjm654456

Pensions and some fund families won’t invest in them any more because of ESG mandates.

notapersonaltrainer

Over 40% of the corn plant is stems, cobs, leaves, and silage. So of course a lot of it goes to animals. Humans can only consume so much Metamucil. Some of it is byproduct. Cows don’t drink whiskey, but they eat the grain that is left after we make whiskey. This is just called efficiency. 83% of a cow's lifetime feed is [forage](https://youtu.be/PoZtMKtUeME?t=755) as part of the same [soil cycle](https://i.imgur.com/fzq0Xg1.jpg) that's been going on since the beginning of time. The idea the world is starving or going to meltdown because we feed some corn trash to cows the last couple months of their lives has become widespread lunacy. If you want the actual cause of famine and shortages it's the ESG people trying to eliminate ruminants, natural gas, fertilizer usage, and nuclear power.

SuperSaiyanGME

They must all be F2M, because we need to be sensitive to the consumer but the firm should have competitive egos. Just be prepared that the M2F are going to get real loud next cycle and you’ll lose ESG points for having a plexiglass ceiling

Cute-Apricot3918

Fossil fuel stocks are, rightly or wrongly, being divested by many managed funds, pension funds, sovereign wealth funds etc. for ESG purposes. Hence downward pressure on prices. I'd be reluctant to fight that tide.

oldmanmillennial

A score of 50 out of 100 is also terrible for governance and ussually an indication of internal control deficiencies which FTX was full of. Yes, ESG ratings can be subjective AF. Also, the agencies have started collecting data just to collect it and have no idea how to analyze it. However, this low governance score for FTX was an accurate red flag.

NCstate223

Imagine investing money into an ESG fund

Admirable_Nothing

ESG is a major factor. Low revenue/profits over the past few years due to low Crude pricing is another. Fascination with Tech and Growth over the past ten years is another. But there time is now.

ammahamma

Cost of operation is near constant. Income is decided by market price (duh). Have a look at oil price charts, and you'll see it fluctuates. When prices drop, they can drop fast. They can go below cost of operation. Right now, prices are high. That has an adverse effect on the global economy, which in turn reduces demand, which then leads to lower prices. Oil prices can stay high, but if they don't you'll be left with poor performance on your stock. Many funds and investors have ESG requirements that exclude oil companies. The net effect of all this is you have a set of stocks that are risky, and in relatively low demand. If you're in early you'll make good money, if you're in late you'll be making a bad in estment. It's a cyclical business.

stupid___loser

That’s an ESG company