Unleashing Prosperity: Embracing Innovation Over ESG
When we examine the achievements of successful individuals, like Larry Fink and his impressive creation of BlackRock, we cannot help but celebrate their success. However, we must also remain vigilant and speak out when those in power misuse their influence to limit our freedoms and hinder growth.
Larry Fink's potential political ambitions could indeed bring new perspectives to the table, possibly surpassing the abilities of current figures like Janet Yellen, Mnuchin, Brady, or Baker. Nevertheless, let us address a growing concern – the rise of cronyism and the misuse of financial might for personal gain, which negatively impacts everyone.
The concept of Environmental, Social, and Governance (ESG) scoring may appear noble at first glance. Evaluating companies based on their environmental impact, social responsibility, and governance practices seems commendable, promising a better world and working environment. However, the reality paints a different picture.
Since adopting ESG rules, businesses have faced increased costs, making capital acquisition more expensive and hampering productivity in countries that embraced this approach. ESG has inadvertently transformed into an unfair tax on companies, influencing investment decisions in ways that could hinder diversity of thought and specific types of innovation.
Larry Fink's success was not built on ESG adherence, raising doubts about his right to impose these regulations on today's start-ups and entrepreneurs. As critics of ESG, I acknowledge that voicing my concerns might be challenging, given Fink's media control. But there are times when speaking the truth becomes necessary.
Contrary to ESG's adoption in the Western world, the developing nations, notably those showing rapid growth, remain skeptical about this approach. Countries like Sri Lanka have faced negative consequences after attempting to embrace ESG, and in Europe, Dutch farmers had their livelihoods destroyed by imposed changes. The Western world's exorbitant spending on ESG initiatives has led to job losses and limited opportunities, potentially jeopardizing our future global leadership.
If we genuinely wish to lead by example and champion moral superiority, let us go all the way. Instead of simply avoiding certain investments based on ESG criteria, why not take a bolder stance, and refuse to support the military complex? Imagine the impact of rejecting investments in arms and weapons of mass destruction.
That would be a real statement of moral leadership, and be far more meaningful, than denying a company a USD50,000 loan, simply because it didn’t invest in the environment!
Ultimately, what we need for economic recovery is growth and innovation. The key to supporting businesses lies in assessing their potential to create desired products or services that generate profits. During times of economic decline, we must critically evaluate whether ESG is the right policy to guide us towards prosperity in the way it is currently enforced.
In conclusion, let us celebrate success while also questioning the methods and policies that may hinder progress. Instead of fixating on ESG, let us embrace innovation, prioritize growth, and foster an environment where businesses can thrive based on their merits. Together, we can unleash prosperity and create a future that benefits all.
Connect with JP Fund Services
Follow us for the latest news & insights
Share this post