ESG investing began in the 1960s as socially responsible investing, with investors excluding stocks or entire industries from their portfolios based on business activities. ESG investing is growing exponentially as more investors and issuers utilize ESG and climate data and tools to support investment decision-making.
Today, ethical considerations and alignment with values remain common motivations of many ESG investors. ESG Ratings aim to assess companies’ long-term resilience to ESG issues through the industry-specific evaluation of crucial ESG risks and opportunities. ESG investing is a term that is often used interchangeably with sustainable investing, socially responsible investing, mission-related investing, or screening.
As companies face rising complexity globally, investors must reevaluate traditional investment approaches. The ESG-labeled bond market has exploded over the last decade. The ESG bonds have become increasingly complex. Most ESG investments are on their way to becoming worthless. The Social Bond Principles and Sustainability Bond Guidelines are the Highways to Hell. ESG invests in green, social, and sustainability products.
ESG funds underperform financially relative to other funds within the same asset manager year after year and charge higher fees. Socially responsible funds do not follow through on proclamations of concerns for stakeholders. Gullible trust funders bought in big time.But now, as a big ESG bank goes belly up, we see the danger of systemic risk to the whole economy. Bank failures fell like dominos in 1929.
Janet Yellen has been urging faster ESG implementations. She believes that a delayed and disorderly transition to a net-zero economy will lead to shocks in the financial system.
Bailing out SVB will cost taxpayers billions. Biden wants to fix the issue. Woke ESG investing is a lousy business. Doing wokeness negates fiduciary duty. You can only be one, not both. Fiduciary duty is a legal obligation that contains significant civil and even criminal penalties if violated. SVB blew $212 billion in record time. Last year, Silicon Valley Bank committed to $5 Billion in Sustainable Finance and Carbon Neutral Operations to Support a Healthier Planet. The SVB CEO stated, “Our ability to make a meaningful difference for people and the planet and to address the systemic risk that climate change presents is magnified by the outsized impact our innovative clients make.” It turned out to be a hit to SVB investors and depositors. Our corporate philosophy of transparency and accountability guides our reporting on environmental, social, and governance performance to build trust and evolve our policies and disclosures. Making money matters not. The SVB CEO sold $3.6 million worth of SVB stock the day before the bank was closed. SVb lent money to businesses helping to advance solutions that create a more just and sustainable world.
Our longstanding commitment to innovation and our deep experience supporting evolving technologies enable us to contribute to a healthier planet via our and our client’s efforts. SVB celebrated more excellent dimensions of diversity. SVB supported women, minorities, & the LGBTQ community more than any other big bank. SVB should have been doing actual banking instead of virtue-signaling loans. Virtue signaling violates fiduciary duty. Silicon Valley Bank used ESG factors to price its loans. This is how the rich play with other people’s money. ESG financial players’ overleverage loans to blue sky neophytes or outright frauds. We have endured financial meltdowns many times before, but many people lost a lot of money.
SVB proves that the green economy is a house of cards. Biden’stwo years of relentless anti-fossil fuel energy policies have savaged the economy. Now he will bail out SVB for the greens at our expense. Bailing out financial greens (SVB’s large depositors and investors) is extremely tricky. Many of them are donors to Biden’s campaign. If the Biden administration thinks it can bail them out and hide the financials from the public, he’ll do that faster than you can say flim-flam. After all, most people are stupid.