Zuckerberg, other tycoons say they’re pulling back from ESG and DEI, but are they real?
NEWYou can now listen to Fox News articles!
Over the past 18 months Environmental, Social and Governance (ESG) agenda faced failures in corporate DEI programs, declining investment dollars, and the collapse of the Net-Zero Insurance Alliance.
In just the past month, the big banks have exited net zero alliances and Meta has been removed many of its diversity, equity and inclusion (DEI) programs. The ESG appears to be unglued. But don’t be fooled.
A closer look at what the banks are saying reveals that they are still full of unrepentant ESG financiers. Many of the proposed changes are superficial or cosmetic rather than indicative of a fundamental philosophical shift.
Diversity, equality and inclusion initiatives have been the subject of heated opinions of praise and criticism. (Adobe Stock)
Dozens of Fortune 500 companies (incl McDonald’s and Walmart) has withdrawn or canceled DEI programs in 2024, trillions of dollars in market cap and millions of employees. The incoming administration has promised to eliminate DEI in federal agencies.
DEI IS LIKE THE LEFT WAKE UP FOR A WAR AGAINST OUR MILITARY. WE MUST NEUTRALIZE IT
The Net-Zero Insurance Alliance has fallen apart over the past year and a half with a mass exodus of insurance companies, when many state attorneys general expressed concern that participation in such an alliance could violate antitrust and collusion laws. US states pulled billions from Blackrock over ESG concerns.
These changes are positive amendments to the flawed and deeply ideological goals of ESG proponents. The latest dominoes to fall are America’s big financial institutions. Goldman SachsWells Fargo, Citigroup, Bank of America and JP Morgan have pulled out of the global Net-Zero Banking Alliance.
Even Blackrock, once a vocal advocate of ESG, has pulled out of the Net Zero Asset Managers Initiative. While this may seem of a piece with other ESG reversals, cynicism is warranted.
If you look at the press releases from these major financial institutions, you will see that they have no regrets and are still committed to achieving net zero goals. For example, Goldman said: “Our priorities are helping our customers achieve their sustainability goals and measuring and reporting on our progress.” Citigroup was even more clear: “we remain committed to achieving net zero.”
I WAS FORCED TO FILE ACTION AGAINST MY SCHOOL DISTRICT TO FORCE OUR FORCED TALKS, RACIST DEI
Blackrock has been most obviously unrepentant. “(O)our membership in some of these organizations has created confusion … and exposed us to legal inquiries … (But it) does not change the way we develop products and solutions for clients or how we manage their portfolios.” Translation: “We just want to distance ourselves from problematic PR, but we’re not changing anything about our business.”
The moves by these big banks mimic Blackrock CEO Larry Fink’s strategy of not using the term “ESG” because it was a political hot potato, but sticking to “sustainability.” Blackrock invests heavily in green infrastructure and renewable energy projects.
It is better if their clients openly demand such investments. But as American Airlines learned last week, pension fund managers have a fiduciary duty to achieve the best financial returns for their clients, and they can be held liable for misusing the funds they manage.
ABOUT HALF OF ALL COLLEGE STUDENTS TAKE REQUIRED DEI COURSES ON CAMPUS: EDUCATION
While superficial progress has been made in getting US financial institutions out of destructive global net-zero alliances, they appear disinclined when it comes to actually changing their ways. This shouldn’t come as a surprise, given that bank employees haven’t changed much. As for ESG, we see no evidence of heart change.
Instead, they seem worried about public pressure and criticism the incoming federal administration and from state government officials. Leaving these alliances gives them a freer hand to express their net zero intentions without having to deliver by a certain date.
But if ESG policy was distracting and disruptive before, it is now. Ideological ESG priorities reduce the ability of companies to perform well and benefit contractual stakeholders. Companies have a hard enough time being profitable without implementing various social justice priorities.
CLICK HERE for more FOX News reviews
Banks would do better to increase shareholder value and clarify their commitment to doing business with everyone. Achieving long-term profitability successfully benefits shareholders, employees, suppliers, and customers.
Most corporations, especially unrepentant financiers, need to clean house in their human resources departments to focus on value creation rather than racial identity politics or expensive virtue signaling on environmental and social issues. And as The American Airlines case suggests that companies that fail to do so may very well be in breach of their fiduciary obligations to customers and shareholders.
English