Something else for investors to consider: These funds lately haven’t beat indices that are simply created to make you money and only do so when they pack themselves with high-flying tech names.īut here’s where Fink and BlackRock still come out ahead: They have sensed that with all the media hype of ESG investing as the next frontier, they can also make a lot of money creating a new type of fund dedicated specifically to ESG - and then charge more for it. Oil companies like Exxon will get higher marks for building wind farms that produce energy inefficiently. Companies often get good grades for supporting lefty causes such as Black Lives Matter. For starters, such investing methods are highly political and veer far to the left. Sounds good on paper - until you drill down. How corporations surrendered to hard-left wokeness ESG is all about ensuring that companies BlackRock holds in its multitudes of funds adhere to certain progressive edicts (like executives not paying themselves too much money). But a BlackRock company official said the company’s vote was a result of its concern that Exxon doesn’t have clear climate-change strategy and its long-term performance will suffer in a “low-carbon economy.”įink has been a huge cheerleader for so-called ESG (environmental, social and corporate governance) investing. While Elon Musk keeps flaunting Tesla’s stock prices, he can’t neglect how much funding he relies on from Uncle Sam just to remain profitable.Ī spokesman for Engine No. With BlackRock on the fund’s side, ExxonMobil eventually folded like a cheap tent. 1 wasn’t qualified to help run an oil company. The $9 trillion investing monster run by Larry Fink may be the most powerful financial firm in the world because it holds shares in large doses of so many big companies and thus can direct corporate policy.Īnd guess what? BlackRock backed this no-name cadre of woke activists, even as Exxon persuasively argued that Engine No. Giving credibility to this apparent lunacy has been one of the biggest and most profitable institutional investors out there: BlackRock. 1 wants the company to figure out ways to reduce its carbon footprint, which again sounds good until you realize it’s also a fancy way of saying it wants Exxon to do less of what it’s good at. 1 on its board to force change.Įngine No. Of course, that hasn’t stopped the progressive celebrations over the news that Exxon will now have to place three reps from Engine No. As proof, they point to the world’s greenest company - electric-car maker Tesla - which feasts on government subsidies and barely turns a profit despite its much-hyped stock price. I know plenty of investors who aren’t convinced that green investing is anything more than a politically induced fad that will never make money, and wouldn’t get financing if it weren’t for government grants. Whether this sentiment expands beyond the woke is a matter of debate. Electric cars will soon be replacing gas guzzlers. Windmills apparently can produce efficient energy at a profit. These savvy veteran investors say making the world a better and greener place will translate into big earnings for companies and bigger returns for shareholders. 1 wants to make money with a progressive twist: The fund’s founders argue that there’s gold in green. Most activists - think Paul Singer and Carl Icahn - are in it for the money. 1, a small activist investor that just fought its way onto the board of what many wokesters consider the most vile company in the world: oil giant ExxonMobil. Progressives love the story of Engine No. Gary Gensler is making the SEC into a banana republicĮx-Goldman Sachs CEO Lloyd Blankfein says feud with successor David Solomon 'so overplayed'ĪMC stock pushers are another example of social media scariness Zelensky wines, dines with the world's richest in the hopes of rebuilding war-torn Ukraine Despite Wall Street and voter reservations, the money is on a Trump vs.
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