Episode 349 - Woke Capitalism: Virtuous or Virtue-Signaling?

Should sustainability be our new standard for investing? According to Larry Fink of BlackRock (more than $7 trillion in assets) the answer is yes. The ESG movement is an investment trend focused on Environmental, Social, and Governance matters in assessing a company's long-term value. American investors have put more than $20 billion into ESG funds in 2019. Will ESG save the world from climate change, increase social and racial justice, eliminate fossil fuels, etc.? This is a new variant of the prior ideas of Corporate Social Responsibility, Social Responsibility Investing, and the Stakeholder theory of corporations. Is ESG being used to alter the structure of the capital markets? Does it really offer superior returns? This is a complex issue and we can see it manifested in how corporate CEOs are more willing to be involved in politics. Join Ed and Ron to discuss these ideas and see if we should be worried, or just concerned?