ESG investing doesn't work: Former BlackRock CIO
Vložit
- čas přidán 7. 09. 2024
- Tariq Fancy, The Rumie Initiative founder and CEO and former BlackRock chief investment officer, joins 'Power Lunch' to discuss why he says that ESG metrics are not useful for investing. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
» Subscribe to CNBC TV: cnb.cx/Subscri...
» Subscribe to CNBC: cnb.cx/Subscri...
» Subscribe to CNBC Classic: cnb.cx/Subscri...
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: www.cnbc.com/2...
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedI...
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/Instagr...
www.cnbc.com/s...
#CNBC
#CNBCTV
I'm glad people are finally realizing this. Lots of companies are going broke trying to boost their ESG report cards. Disney, Anheuser-Busch, Target.. They put ESG over their customers and now they are losing billions. ESG is just a Ponzi scheme that just benefits companies like BlackRock. The sooner companies realize that the better.
Exactly ESG only helps Blackrock in the end.
They aren't done dividing people with DEI, or destroying products with ESG.
@@commonsense2156 In the end it probably does create more wokeism. Obviously people wouldn't have rushed to donate to BLM , ACLU, NAACP or Pirde if not to better their scores. But people do not want the institution of these changes. Affirmative Action is only supported by 30% of the population as far as the polls say, which means its supported by almost no one in real life.
I concur.. a giant scheme of ponzy. But why no probono.sue these criminals and shut down WEF??
yes ESG is just a tactic to make lefties invest and not hate a capitalist economy. its the lgbt vegan version of capitalism.
ESG investing doesn't work. It is a marketing strategy to get you to pay higher expense ratios and then to pat yourself on the back.
The job of my investment person is to maximize my returns, not to conduct a social experiment with my money. Just like investing my tax dollars, in promoting social justice in softening criminal laws, that put citizens at risk of getting robbed, punched, or stabled. My tax dollars, like my investment dollars, are not to be used to promote social experiments, so groups feel good about themselves. Either example, I get a lower return, or subject myself to a criminal, who shouldn’t be on the street. Neither are good, at the expense of feel good non practicals feel good social experiments being conducted on hard working middle class citizens. No thanks
Every ESG report I have read talks about DEI and having a DEI Officer. “Social Justice” is a part of ESG.
Then dont allow any of your money to be handled by Blakc Rock or State Street, because they dont believe in Shareholder capitalism. They believe in Stakeholder capitalism. Meaning they dont telly care about your returns. All they care about is their DEI scores.
he is exactly right.....everything is ESG this and ESG that, but it's just smoke and mirrors
ESG is only an an angle at manipulation; it’s metrics are subjective. it’s gross and just marketing.
Created the horrible woke culture too
Its not just smoke and mirrors. It just isnt fair. No one elected Blakc Rock to solve any problems.
Spot on. ESG is mostly marketing when it comes to an investment theme.
The fact is, no one elected investment firms to cure any social ills. This is tyranny of the wealthy and powerful.
Wow, 7 months on he has been proven so right. Evidenced by current high has prices.
Surprised this still on CZcams
ESG is marketing nothing else
this guy knows more and willingly to say the obvious than entire CNBC
Too much truth from this guy
Agree! Investors need to punish investment firms who have violated their basic fiduciary responsibilities in the pursuit of their corporate ESG nonsense initiatives.
ESG is nothing more than a social credit. Those behind it should swing in the wind.
Too little focus on the "G" part of "ESG". Corporate Governance / Management Teams ought to matter far more to the investment due diligence process.
“Governance” is choosing people to run the company based on color of skin or sexual preference instead of merit. It’s a great way to run your company into the ground. Better not to focus on “G”
"We need a price on carbon" Really ? Blackrock hypocrisy
When has environmental concerns ever worked, electric car, no way . Esg connected to Blackrock, we're in trouble.
Corporate entities have a legally binding FIDUCIARY responsibility to SHAREHOLDERS (the actual investors who have skin in the game) not Stakeholders who are pushing woke/Marxist policies
These Marxist policies also overlap with fascist authoritarianism. These companies are using Orwell's Animal Farm as a guide, not a warning.
Does BlackRock hate capitalism?
Wait. An honest man?
I think what he means to say is ESG as marketed by BlackRock is BS.
ESG as a movement is BS.
ESG is complete fabrication. The forests and production facilities randomly bursting into flames around the world AREN'T doing so because of "climate change". There's more at play here. and the fact that a regulated form of weather manipulation technology exists in the hands of several research facilities in the world is reason enough to believe that. It's foul play plain and simple.
brown jake gyellnhall
Emission. We did reduce. But the weather did major damaging. So we suspect we did use excessive cruise oil.
^ Check your spell-check. Your comment doesn't make sense!
This guy makes a lot of sense
ESG is a political affiliation test and nothing more. I'm so sick of this crap
what an insane conversation leading past the sale. i don't agree with the premise that exxon needs to be corrected either by ESG or by some socialist tax penalty for merely conducting business. what is going on in America? this is not capitalism in any way shape or form. both ESG and/or carbon tax penalty will weaken critical businesses that America needs.
ESG Disney 😂 enough said!
These ESG Cos are exposing themselves to huge lawsuits. The marketing is only to other ESG hypocrites.
Tax on a naturally occurring gas is dumb. I mean how much tax are you going to charge me? $.05 every breath I take? There are nearly 8 billion mouth breathers in the world, this equates to approx. 18billion .lbs of CO2 per day.
Pl check how the multi-lateral development Banks invest. ESG as being slandered in Financial markets is SO below par and dilutes the capability of ESG tool.
We do not have short repeat earn from less than 30% to any investors. The retire group did not receive any.
While Government has a role, did this person JUST recognized ESG investment does not work, only after the oil prices escalated? I am not clear about the conflicting messages.
DEI Didn’t Earn It
I proudly Boycott all companies, entertainment and people who promote and support DEI / ESG………
Lowes (low) is a hot one to buy NOW! just got a huge price target increase. Should pop alot higher tom.
Why are they hoping to tax plant air again? If you want green, increase CO2. Trees and plants love it.
I mean, I have yet to fully form an option on ESG in particular, but here's my take on ethical investing: it's not investing in the traditional sense, which is targeted at maximizing return. It's basically a reusable donation: after the company you donate to succeeds, you get an amount that's at least what you put in adjusted for inflation, so you can (1) donate again, and (2) make sure the companies you donate to are solvent.
So it's something in between investing with maximum returns in mind and a donation (which is purely for a cause and guarantees a 100% loss (not counting the tax write-off).
How do you know the official definition of good Social and Governance matches your personal definition of what constitutes good Social and Governance? If it's definition changes -- and you know that inevitably, it WILL change; to incentivise investing in behaviors and politics that are directly diametrically opposed to what you, as an investor values? You don't get to control that definition; so why would you support it?
@@gilian2587 Like I said, I haven't formed an opinion on ESG in particular, and part of the reason is the concerns that you raised, that the ESG definition can change and be diametrically opposed to your personal values. Hence, to form an opinion on ESG, I need to do more due diligence than I have done right now.
But your concerns only address a specific kind of ethical investing, not ethical investing in general, which is what I talked about in most of my comment. Ethical investing is any attempt to make one's own investing conform to one's personal values, which can but doesn't have to be an official ESG portfolio.
@@vanyac6448 This is true. I have only addressed the portion of ESG investing that concerns me the most. There are deeper concerns regarding the possibility that ESG could turn into a kind of Social Credit system if it takes off. There's also a risk that it could evolve into a de facto 'noblesse oblige' which purports to be ethical in theory, and in reality is detrimental in practice; where businesses with high ESG scores (like say... those who define the ESG rating and their direct cronies) receive undue excessive access to nearly infinite capital resources and all businesses outside of the crony circle have a much lower ESG score and are effectively starved of capital resources.
Oh the shenanigans surrounding this kind of a metric could be endless. If one were creative enough in it's implementation -- it could even become a new system of nobility. I'm sure that the body public of all the Republics spread across Europe, the US, Canada, and the commonwealth of the UK would be thrilled to see a new iteration of return to Feudalism version 2.0! (I am being facetious as I make this statement)
You are absolutely right that you can practice ethical investing without directly utilizing an ESG portfolio. The problem would come if a legislative body ended up requiring all investment products offered to the public to conform to the ESG definitions, scores and umbrellas of investing. That could become quite dangerous to the production and supply infrastructure if a necessary resource comes from a source with an arbitrarily low ESG score that had been starved of the capital that it needs to provide said resource; like, say... cadmium or lithium.
And imagine how bad things could get if some arbitrarily defined ethics metric ended up gumming up the production and supply pipelines for our food infrastructure? This would be a worst possible case scenario.
I should emphasize that I don't think that ethical investing is a bad thing. I am just concerned that the potential for abusing and gaming an ESG metric is quite significant and could lead to monopoly and severe infrastructural problems under the right conditions.
So listen to this guy no good. 5000 dollar invest and each month for 500 dollar return. You can not make why you are the investor. You better put monies in saving and earn 500 dollars each year.
I eat the fish
ESG is in a very early stage.
It’s still a concept and MSCI themselves have said that there methodology has more speculation than practicality.
For now companies are getting funds for good cause.
If they are good causes, then why are we seeing fans for franchises from Disney, Marvel, etc. fleeing in droves, substandard entertainment, and also a lack of noticeable drops in carbon emissions? It's not results-based, and that's a problem. These modern audiences they claim to serve do not exist. They are using it as an excuse to impose corporate ideologies.
After listening to this guy I still don't understand what this all about..well I know it's always about making money and lots of it.. Mr fancy should explain to us simpletons what needs to change and how to achieve it to make this planet we live on sustainable and repair the damage we are inflicting on this beautiful world
Like most liberals your intentions are good but you are missing the mark. ESG was a scam. You cannot give American companies a low score but then let Chinese companies produce unrestricted. You think it's a problem that people are shifting away from ESG but it's been proven not to help the environment or the company's using ESG. There was a Ponzi scheme. That's why the electric car company Tesla got a low ESG score because they don't like Elon musk. But then Exxon will get a high ESG score even though they pollute the oceans. If you look at Hollywood entertainment diversity equity and inclusion plus ESG usually equals lack of money or interest. Just look at Anheuser-Busch and Disney. These are companies that are going broke chasing their ESG scores. It has done nothing to make the companies better or make them more appealing to investors. Even Black Rock is pulling away from ESG and they were the ones pushing it in the first place. Maybe we don't have a better plan but the old ESG model is definitely broken it was not helping anyone except for maybe China.
It's a way for the powers that be to pick winners and losers
Huh?
More “Make losers”.
why not a tax on coca cola bottles as industrial waste globally? Go to countries like Nicaragua to see the have no way yo handle this waste other just burning it, if anything.
This guy he make a living by the cruise oil. Since the global weather crisis. He did not make monies a lot to sale cruise oil. .he started to run new business as make pipes and hope that and hope that he able to make huge profit. Because oil cruise pipe able to low down down the cost of cruise oil per gallon. But the environment total damage. So he total lost. In cruise oil business as well make pipes business.
Thanks for God heavenly father Jesus Christ Joshua and Mary bless United States of America, citizens of united state of America and CNBC interview today
Do not listen to this guy. The company or the initial investor billion dollars but no pay out.
Learn how to write!
The federal reserve has code for lending currency to local bank. And local bank must follow currency code to lending the demand. The business must comply the currency code. If they do not we will face more recession.
Tariq totally undermines his argument when he says that policy changes need to occur to address our biggest issues which are social and environmental challenges (1:30 minute). ESG is just one way to use market pressure to make that happen on a policy level.
No, when it's a policy concerning a public good that has to be allocated in a way consistent with that set of requirements, market pressure is the last thing you want. That only works with private goods. Most private goods are privatised already. Look what happened to Los Angeles' public transportation networks.
We need good environment we need good company we need good supporter and we need hornet investors. And we need good trading code. All of these must match and we need short term earn and repetition in order to control inflation and recession. The bull wild earning. The bear wild bankruptcy.
He didn't really respond to her last question. Obviously ESG is extremely limited in effectiveness as ALL market based solutions are. But he didn't have a convincing argument for eliminating ESG entirely. Aren't most ESG investors the same people pushing for carbon taxes and other government intervention on emissions? I don't see how ESG is distracting any serious environmentalist from better solutions.