ESG is creating waves among politicians, business leaders, and everyday Americans. And for good reason.
The acronym stands for “environmental, social, and governance,” which is a set of criteria investors have been increasingly using, purportedly to better manage risk, and measure their portfolios’ track record on so-called “sustainability.” It sounds harmless enough, but in reality, ESG investing standards manipulate corporations into weaving ideological agendas throughout their services, workforces, and public affairs.
In a recent article published by Alliance Defending Freedom (ADF), Caroline Reeves outlines how ESG began, how it’s being forced into corporations, and the damage ESG does to markets and society. Unfortunately, the problems plaguing ESG are more than skin deep, they’re terminal flaws.
This includes, Reeves points out, prioritizing environmentalism, adopting diversity, equity, and inclusion (DEI) policies or critical race theory to appear more socially conscious, and abiding by an externally set series of race and gender-based quotas.
When companies embrace ESG, they are encouraged to prioritize DEI quotas and ideological initiatives over providing quality products and services to customers. The damaging effects of ESG policies are numerous, affecting every American.
ADF is far from alone in sounding the alarm about the ideological weaponization of ESG. Heritage Action for America recently launched ESG Hurts, aimed at providing Americans with education and legislation to remedy the problem. Likewise, leaders at the state level and investment professionals have distanced themselves from ESG. Even left-leaning media sources are drawing attention to some of the dangers inherent in the framework.
ESG negatively impacts businesses, pushing them to prioritize politicized workplace policies over what should be their primary focus: making high quality products and boosting company value vis-à-vis meeting customer needs.
Under the guise of championing climate change and social justice, business leaders and employees who disagree with radical political pursuits are being silenced. ESG is hurting every American. When companies stray from their main objective, it’s the customers who lose, and when even one person is silenced for holding a different opinion, we all lose.
Read the piece in full at ADFLegal.org.