into levers for use by activist investors, and encouraging CEOs to squeeze other stakeholders to drive immediate returns to investors. Suffice it to say these manage-to-the-market provisions are not what the public conceives of as the ESG agenda, which favors sustainable wealth creation over the juicing of short-term share prices.
Rather, we focus on something more indisputable and that has been ignored. As the Big Three, other investors, and advisors like ESG raters have embraced a focus on sustainable wealth creation and more emphasis on the E and the S, their G policies have not changed.
To our minds, there are two important policy implications of this disconnect between the investment communities’ stated ESG commitments and their approach towards corporate governance. First, it is not clear that the Big Three, other institutional investors, or the ESG raters have reflected on this tension and considered whether their G policies should evolve accordingly.
'ESG has been perverted beyond recognition'
Ethical responsibility.
Pretty easy to write this article with the hindsight of the SBF failure. There’s no value to reading this now the cats out of the bag.