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Socially Responsible Investing Can Be Like Searching for Fool’s Gold

“ESG proponents argue that when companies place importance on reducing their carbon footprint, emphasizing workplace management or improving board diversity, they are doing good business that will generate greater long-term financial returns for their investors. […] Many academic and industry studies have looked into this, however, and there is no conclusive evidence that ESG investing leads to superior returns for investors.”

The Cantillon Effect: Why Wall Street Gets a Bailout and You Don’t

“According to the 18th-century French banker and philosopher Richard Cantillon, who benefits when the state prints money is based on its institutional setup. In the 18th century, this meant that the closer you were to the king and the wealthy, the more you benefitted, and the further away you were, the more you were harmed. The same is true today, with the Fed’s anti-pandemic liquidity measures benefitting hedge funds and private equity firms first.”

How Private Equity Companies Are Lobbying to Profit from The Covid-19 Economic Fallout

“Private equity funds aren’t just seeking to save the investments they already have, but to get access to more capital to invest in a period where asset prices are quite low. They have been lobbying to have access to government lending/grant programs to small businesses and to Federal Reserve credit lines. Top private equity executives are also part of the crisis management shadow-cabinet led by Jared Kushner.”

This Is Not a Financial Crisis, So Why Should We Bailout Wall Street (Again)?

“Republican and Democratic Senators reached a deal on a $2 trillion bill to help businesses and people hit by the coronavirus outbreak. But the bill also includes slush funds to bail out market funds and guarantee trillions of dollars of risky bank debt. At the same time, millions of small and medium-sized businesses are going to have no access to cash and revenue freezes, because of the pandemic and economic restrictions.”

The Devil Is in the Detail When It Comes to Responsible Investing

“Civil society organisations, academics and journalists have begun questioning whether responsible investment can bring about the level and pace of change required to enable an inclusive climate change transition. They are also highlighting the high risk of greenwashing – when companies set ambitious climate goals but have no plans for how to get there. To better understand whether the financial industry is really shifting, we looked to South Africa, a country with a leading regulatory framework for responsible investment.

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