The Prof G Pod with Scott Galloway The Illusion of ESG Investing — with Tariq Fancy
Mar 17, 2022
Tariq Fancy, the Founder and CEO of The Rumie Initiative and former Chief Investment Officer for Sustainable Investing at BlackRock, critiques the effectiveness of ESG investing, calling it a 'dangerous placebo.' He discusses the influence of corporate lobbying on public policy and the disconnect between ESG concepts and real societal change. Tariq emphasizes the need for government intervention to address urgent issues like climate change, while reflecting on current market dynamics and the challenging financial landscape.
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ESG as Placebo
- ESG investing is a placebo harming the public.
- It reshuffles existing public shares into "greener" baskets, allowing for increased fees.
ESG as Marketing Ploy
- ESG is often used as a marketing tactic to raise capital at unsustainable valuations.
- Companies exploit public concern for environmental and social issues.
Government Regulation
- Real change requires government regulation, not voluntary compliance.
- Short-term incentives misalign with long-term public interest.