The Gray Area with Sean Illing

Is ethical investing a scam?

Dec 16, 2021

Tariq Fancy, founder and CEO of the Rumie Initiative and former CIO for sustainable investing at BlackRock, challenges the effectiveness of ESG funds in driving real change. He discusses the illusion of corporate social responsibility and the superficial commitments made by companies. Fancy emphasizes the need for government intervention instead of relying on voluntary corporate actions. He critiques the limitations of ethical investing and advocates for structured regulations to promote genuine accountability and sustainability.

57:38

Episode guests

Tariq Fancy

AI Chapters

Episode notes

Intro

4min

Exploring the Complexities of ESG Investing

19min

The Illusion of Corporate Social Responsibility

3min

Corporate Responsibility Under Scrutiny

20min

The Limitations of Disclosure in Corporate Accountability

2min

Navigating Ethical Investing and Corporate Influence

2min

The Limitations of Ethical Investing

7min

Vox's Emily Stewart talks with Tariq Fancy about whether or not "socially responsible investment" is a scam. Fancy is a former executive who led sustainable investing at BlackRock, one of the world's largest asset management firms. The two discuss why these investment vehicles were developed and promoted, the failure of corporations to voluntarily self-regulate, and the need for government action to actually address the issues that ESG funds claim to be taking on.

Host: Emily Stewart (@EmilyStewartM), Senior reporter, Vox

Guest: Tariq Fancy (@sosofancy), founder & CEO, Rumie Initiative; former CIO for sustainable investing, BlackRock

References:

"The thorny truth about socially responsible investing" by Emily Stewart (Vox; Oct. 10)
"Blackrock's former sustainable investing chief now thinks ESG is a 'dangerous placebo'" by Silvia Amaro (CNBC; Aug. 24)
"BlackRock's Message: Contribute to Society, or Risk Losing Our Support" by Andrew Ross Sorkin (New York Times; Jan. 15, 2018)
"Harvard Will Move to Divest its Endowment from Fossil Fuels" by Jasper G. Goodman and Kelsey J. Griffin (The Crimson; Sept. 10)
"The Illusory Promise of Stakeholder Governance" by Lucian A. Bebchuk and Roberto Tallarita (Cornell Law Review; Dec. 2020)
"In His Final Shareholder Letter, Jeff Bezos Explains a Profoundly Simple Lesson Most Leaders Overlook" by Jason Aten (Inc.; Apr. 16)
"Little Engine No. 1 beat Exxon with just $12.5 million" by Svea Herbst-Bayliss (Reuters; June 29)

Enjoyed this episode? Rate Vox Conversations ⭐⭐⭐⭐⭐ and leave a review on Apple Podcasts.

Subscribe for free. Be the first to hear the next episode of Vox Conversations by subscribing in your favorite podcast app.

Support Vox Conversations by making a financial contribution to Vox! bit.ly/givepodcasts

This episode was made by:

Producer: Erikk Geannikis
Editor: Amy Drozdowska
Engineer: Paul Robert Mounsey
Deputy Editorial Director, Vox Talk: Amber Hall
Vox Audio Fellow: Victoria Dominguez

Learn more about your ad choices. Visit podcastchoices.com/adchoices

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.