How ESG Metrics Work And Why All Investors Should Care
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- เผยแพร่เมื่อ 31 พ.ค. 2024
- "The Conscious Investor" is presented by Nuveen.
Martin Kremenstein, head of retirement and ETF solutions at Nuveen, explains how ESG metrics serve as an indicator of quality and can be used as a risk management tool.
According to research from MSCI, companies in the bottom ESG quintile have been twice as likely to suffer a catastrophic loss (over 95% cumulative loss) within three years.
MSCI downgraded Equifax to the lowest ESG rating on cybersecurity concerns a year before the data breach was announced.
Kremenstein says that Facebook was excluded from Nuveen's NuShares ESG Large-Cap Growth ETF from the time it launched in December 2016. He explains, "it scored relatively poorly, compared to other tech companies over data privacy concerns."
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He just grouped nuclear power in with gambling companies, tobacco, and alcohol. WTF??
ESG Another Woke leftard operation based on politics-Tesla kicked out of index,ohh because Elon Musk called democrats what they are
LoGiC, ESG the new social credits 🤪
I'm not 100% sure but i think they were grouped together because they're the types of companies that are often extracted during "negative screening" which picks out the type of businesses ppl want to avoid investing in because they're controversial or because of issues like human rights violation. for ex. nuclear power is most commonly sourced by uranium which is extracted through uranium mining (also needed for nuclear weapons) which has broad range of issues like radioactive waste with stays dangerous for thousands of ears, miners exposed to carcinogenic dusts and materials. gambling companies are screened out because it apparently increases gambling addiction and instead of helping the local economy it burdens it as problematic gambling increases with locals, and (according to different sources) suicide rate among different addictions is highest for people with gambling addiction. Regardless of all the environmental impacts, Tobacco companies are seen negatively because tobacco causes many types of cancers. Extended us of alcohol also causes all kinds of health problems.
Essentially he grouped them together in the context of the ESG investment framework which ppl like to consider during investment when ESG factors are important to them and theses companies tend to fail many of these competencies.
That's the only answer that will, actually, WORK!
@@cantaloupe7296 I see, you should bone up batteries, they don't grow on trees. Children mining cobalt is very PC.
This is ultimate control. This scoring will determine if individuals can get loans or participate in commerce
It's what the left always wanted. This will be our downfall by this propaganda.
esg scoring only applies to businesses
@@Sanerah for now. If you google ESG you can already score yourself and businesses are already tracking individual scores but say they are only " tracking them for information"
Tell that to the people of China
Yup. Just learning of this. Pulling my money from Wells Fargo and using a local credit union today.
The speaker speaks slowly when telling normal things but speaks extremely fast when telling important details or terms, so that I sense a sinisterness there. Thanks to this guy, I'm now thinking how bad ESG is.
ESG scores are irrelevant at best, evil at worst.
The worst thing is that a very small group of people gain control over the monetary system.
They already do just making it more obvious
they already have control. this is just the private sector trying to pre-empt government action that would actually solve problems. it's not additional evil, it's just business as usual in unregulated financial instruments. just look at the involvement of credit ratings agencies in the 2008 financial crisis. the people calling this some evil tyrannical liberal plot are psychotic conspiracy theorists
Since they control retirement funds (yes like the mafia used to) they are far from harmless.
yup this is central planning, 0.0001% push some sort of "ESG score" on 99% to control them and this will absolutely have disastrous long term economic impact
Invest with your values, I want a portfolio with a negative ESG
FLING IT.
Me too! ESG sucks.
Add STRV ETF then. It's by an anti-esg SPY tracker by a previous presidential candidate runner Vivek Ramaswamy. STRV includes Tesla, Since the S&P 500 kicked Tesla out of its index for terrible ESG score. Vivek Ramaswamy is very much against ESG when he ran for presidential election.
I agree with all those who think this is a crock of shite. We have eco conscious green loving security conscious companies now, the customer wins and determines the type of company and success . Everything the interviewee stated is already taken care of. No more government intervention
Centralized "planning" by elite bloodliner narcs and psychos, behind closed doors... is as WASTEFUL and destructive, as it gets. (Socialism, Communism and Fascism, for e.g.) A PRS staged "power grab" under the guise of Social- engineered "environmentalist inclusivism," is "lipstick on an Animal Farmed" IH$ cult PIG... 1984- Brave New World Matrixed, mind, body and soul(less) Fascist totalitarian "global(ist) NWO prison planet, noone with a half a brain and ANY "common sense" is going to go along with. Not even in: Russia, China, NK, etc. This is going to get interesting, soon! ;-)
Divesting from nuclear - how stupid is moving away from most green of the tech
It's all politics.
Did I hear him correctly??? Divesting from nuclear??????? That’s absurd. It’s literally the cleanest energy
The cleanest energy? With all the deadly waste? Please explain...
@@chrisi112345 if you need this to be explained to you, you need to rethink your entire life.
Because it doesn’t build Chinas economy. That’s why they don’t like nuclear. They love China they have complete control over their citizens and that’s what they want for the world
@@chrisi112345 there is no deadly waste
@@msr9042 then what do we need dry cask storage for, and why are people trying to find solutions to store nuklear waste underground for thousands of years?
esg score is woke score
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
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This is what conservatives call corporate wokeness. The more virtue of a company can signal, the more its ESG value increases
Glen Beck had a Chinese woman on saying wokeness is communism .
This kind of thing will end the concept of free market.
@@vibhorejaiswal2997 lol what free market?
@@vibhorejaiswal2997 Yeah because having the added freedom to choose companies that support your values is in any way different from what we're already doing? How does that make any sense.
@@calelsuper2725 Glenn's new book on the great reset also gets into ESG scores it's evil all this crap is evil ESG scores is akin to a social credit score for a company and it needs to be stopped.
Is it just me or does this seem extremely dangerous in the particular social/political climate we're in?
Yep. This is all indoctrination leftist virtue signaling since they can't win at real science now they will enforce this.
From what I understand, that is the point?
@@springerworks002 point being that this will be abused in every way possible? Do as we say or not meet your days pay?
It's literally communists promoting communism. It's America's version of the social credit score
It literally helped to create the environment we are in.
West's own version of the social credit system
Let me get this straight, if somebody found the cure for cancer but did not want to contribute to the environment or the social justice warrior causes, they would have a low score right?
Exactly
Yes. For example CocaCola Co. has high ESG rating and all they mostly contribute to weight gain and diabetes :D
Also Lockheed Martin was named to the DJSI, which include top companies in the S&P Global Market Index based on best-in-class ESG benchmarks and they sell mostly military aviation and missiles. ESG scores are joke.
How is this entire comment section filled with absolute idiots?
Exactly. Which is why Tesla just fell out of the S&P threshold for ESG. It doesn't mean anything. In fact, I think Tesla is just disliked by certain powerful people that's why it fell out. ESG is a scam.
@@richier8898i guess we all have a choice in choosing whats in our diet right
You're witnessing the end of Capitalism and the truly Free Market! Adam Smith R.I.P.
Great diversification
To be fair, the system have had a pretty good run since 18th century. It's about time humans race do something for themselves. This includes you, me and 98% of population on Earth.
@@anneliu3816 then you don't mind jumping into the wood chipper first.
Free markets gone. Long gone!
The market has never ever been free. It has always been subsidized to get to the results government wants, and, ideally, government represents the people.
Shareholders will be replaced by stakeholders, you left that out.
What will ALL the people who have invested for decades get? Nothing.
I'd say you clearly don't know how business works, but your username gave it away for me.
This aged well as our banks fail due to investing in ESG instead of profitability
ESG is also the driver of trans marketing efforts, like Dyldo muhlvaney. Companies actually get points for doing edgey stuff like that
Complete and utter insanity
Sugarcoat it as much as you want. This is woke fascism.
Exactly !
Here's a thought: maybe society's values should be decided democratically rather than by unelected corporate leaders?
So...have corporations got too much power?
ESG funds are old wine in new bottles. They should be viewed with care. This speaker is a salesman.
The speaker is a propagandist !
We need to pass a federal law banning ESG
We need to ABOLISH the centralizing Fascist Totalitarian's main means of dictatorial "governance." (i.e. Those UN subcorp. FEDs... are the main, problem.) And kick their BAR franchised "bylaws," to the curb. Let them "push harder," because the REAL "reset..." is coming. ;-)
You cant beat the powerful Jews, who do you think has the most influence in the US government and the supreme court? The Jews.
it won't happen. The government is backing up this bs.
It would never get introduced in Congress. All of the politicians would have to agree to potentially lose backing from big corporations and investors💯
@@crapz2395 Oh yeah!
More “well-intentioned” central planning.
The Independent Sentinel reported that, thanks to ESG strategies, investment in oil and gas companies dropped from 59 funds with a total of $46 billion in 2015 to 11 funds with a total of $4.6 billion in 2021. The loss in investment capital has contributed to reduced production and higher prices at the pump.
Lol
Please American quit Harvard and get a job. The top 5 countries in the world that raised there score are all in collapse.
They have no food.
Which is what needs to happen! We cannot afford, at any price, to continue use of fossil fuels. ESG helps us highlight companies that truly are protecting our future state.
They are already planning on making private ownership of car and houses illegal, killing small family farms and working to have us eat insects while they eat steak.
These are closet nazis.
We American elect our politicians to create laws and policy. Unelected beaurocrats should NOT determine how we live.
Thank God for the second amendment which protects our ability to have weapons and quickly form a "well regulated militia"
In case anyone is confuse
Illuminati you will own nothing and be happy agenda 2030
th-cam.com/video/IYHSieA3tWA/w-d-xo.html
Coin bureau explains WEF great reset plan
th-cam.com/video/6o02uGWuMD0/w-d-xo.html
Ok. ESG is part of great reset. I get it now.
The great reset to Stalinism.
Hopefully that ESG thing doesn't pass! That would bring a huge mess and slavery to the hole population.
@Will Swift uhnn 🤔 It's better to understand if you what a video because if I write an explanation it's going to take several lines. If u watch 'Glenn Beck' TH-cam channel u gonna understand very well. 👍🏻
@Will Swift the NWO is "inventing" a rating (ESG)to judge and say who is good or bad accordingly with their conception. So they can for example aprove ur company or not to take bank's money for investment based on your ESG rates. So we not going to be "good" based on performance but based on what ESG says what we are..
ESG is political leverage to force conformity. Avoid businesses who employ this political pressure.
This is a corporate version of China's Social Credit Score: entirely subjective, and a stick to punish those who don't go along with the Approved Narrative.
this is the beginning of total control.
ESG should not have a place at our workplace. Companies should make money and increase profitability for investors.
To sum it all up, ESG is a social credit system
Isn't it easier to just measure how success a company is based on how much profit that they make ?
It looks like a Chinese style soscial credit sytem this
@@calelsuper2725 and that is stupid system
You mean like amazon making profit but avoiding taxes and exploiting their employees? If that's good enough for you, then no one will stop you from investing.
"Lots of people have different views on what's more important. For some people it's around environmental, for others it's social and for others it's governance"
- and then there's those weirdos (known as investors) for whom it's around ROI.
Nike which runs sweatshops in Asia has better ESG score than Tesla.
So they now say that EXXON is the most environmental and social business of all. Very good metric indeed.
ESG-far left, corporate authoritarianism is what I fear. I'm open to taking care of environment & society, but not at the expense of shaming companies or banning them from social media, or denying them loans just because they have a different political ideology. For now, I'm siding with freedom loving conservatives. ESG looks like far left, corporate authoritarianism.
We have the freedom to support businesses that care about diversity and the environment as well as not giving our money and support to companies that waste excessively or don't hire people of our identities. This is a free as freedom gets. Companies that people don't like will always get the boot 😂
@@yoshitheonly no this isn’t freedom this the erosion of freedom
@@yoshitheonlyyou hit the nail on the head. If I read your comment correctly, if your NOT part of ESG you are wasteful or discriminate. We have the ability to look into companies and see what their values are. We should define our own values and not let some global order do that for us. The ESG scoring model is not static. Who knows what ideologies could be forced on the company or its employees to retain these scores. This is very dangerous in my opinion.
Stalinism on the march !
This is basically China's social credit score system.
but the liberal woke version of it
No it’s not. Not even close
@@mitchwebster9079 They need to remove the "S" for Social in ESG before we can talk about the benefits. There's no reason the WEF should be influencing corporate cultures to fall in line from the top down.
The Communist aspect of ESG , was never mentioned ……
Could you mention some of those communist points then? Genuinely curious
@@Jack-vo6bu this is very similar to the social credit system in China. It also judges companies based on how they “treat” their workers. Which I doubt has anything to do with actual economic benefit for the company but instead how “virtuous” they are.
Investing in private capital just Marx intended.
@@Jack-vo6bu it’s centrally planned social engineering utilizing the framework of “social justice”. Social justice is based on Intersectionality/CRT/identity politics/woke Victocracy. Philosophically, it’s an identity based redistribution of resources. In practice, it will be a ruling class getting richer while hiding behind a noble ideology (just like communism).
ESG is the new control tool. Investing in companies based on their values( wokeness) instead of their balance sheet
This is about control. Dangerous Dangerous path.
we found the core of wokness ESG, defund ESG!
It actually started in the universities and then the churches. Now the corporations.
As an investor, I do care about ESG/DEI issues. I avoid them at all costs because I'd rather the companies I invest in focus on shareholders and not the weird politics of the week.
Interesting discussion of the potential reduced tail risk of ESG companies at 8:20. Just note that high ESG companies are not necessarily more likely as a whole to outperform a general market index.
Not always but quite often, we made a study of the top ESG performers in the Mexican market and they outperformed, it surely has some correlation to the best managed companies but it still pays off.
@@lumoncon that's because only high ESG companies have access to the resources needed for expansion.
NO SHIT, SHERLOCK :D
It's a TOTALLY meaningless thing this "ESG".
Hopefully, Some companies go out of their way to have as low an "ESG" score as possible :)
This is pure stupidity.
This is horrifying
So worthless people justifying being worthless, got it!
Joe rogan anyone?
This sounds an awful lot like china's social credit system.
ah. I remember this Black Mirror episode!
This says 228 comments at the top but only three replies to only one comment.
I only see ur comment
@@bjornhagman9848 me too
Which companies evaluate ESG,?
Good question. Who determines what is “socially just”?
B corp is one .
Ben and jerries are on the b corp certification scheme . They are scored using the b tek software produced by b labs .
I believe b corp was created in the uk by two wealthy people.
Their mission statement is to create a b ecoony alongside the normal one with the aim of it becoming the only one economy. Wankers.
Blackrock, I've heard.
@@Individual_Lives_Matter The people with disproportionatelly large noses, or so I've heard. Just look at the last name of the guy in the video
@@DF-ss5ep Didn't it created it in the first place?
This is likely to idiotically cause an economic crash and it did. Shit is this also where the major push on gas prices is coming from as well??
in practice we have a bunch of incompetent companies putting gay flags to compensate for not being profitable
New con tactics 😝
Yep. For leftist to get money from helicopters. Modern Monetary Theory at its best.
Invest according to your beliefs or the beliefs of the people who set the criterion?
This whole thing sounds like out-of-control government to me. And a new entity, controlling way too much monetary power entity we have no control over.
I really appreciate the little animations
Didn't understand
Ultimate control
Why would I care about their environmental impact? I'm trying to retire without working myself to death, if you want to find my retirement go ahead but until then I'll just go with the best performing companie
Communism.
Nuclear power divestment. That's kind of kinky, because might actually shoot in the ankle.
That’s what happens when know-it-all central planners try to take over the market. It’s just a new Lysenkoism.
They talk about it like it's right. Like to hell with history and performance it's their way or the highway.
Woah woah woah.
Stop right there with the poking of diversity in management.
Managers by their very nature are selected as the best candidate for the job based on metrics of personal growth and responsibility... at the end of the process if there is a tie, knock yourself out with diversity. If this scorecard crap is in the way of profit, it's a losing proposition
This is other nonsense it's another two to use against individuals unheard of this legacy ecosystem it just gets me closer to crypto
6:00 Nuclear power classified as a sin?
They really love environment don't they ?
Essentially corporations are developing a social credit system like China now. /sarcasm I'm sure this is going to be a net benefit to the consumer /end sarcasm
Nuclear is a sin but coal and oil are never mentioned. I can't think of a single reason why that could possibly be...
$$$$$$$
So MSCI is the scoring data provider
It's very difficult to conduct Esg.
ESG = How woke people can lose money in the stock market and still maintain a false sense of accomplishment and wokeness 😢
then why is it that if I google SNP 500 ESG index performance, the ESG version has been doing significantly better?
Curiously, the visual demographics is gender-specific but 'caucasian' which is a subtle 'oversight', or is it ..?
Could this be the reason China now owns 31 percent of our farmlands and buying pork processing plants, we will be hungry but they will eat okay.
What's the mission of those pushing this totally controlling framework?
ESG is unconstitutional.
He saidyou can use ESG to assess a company to invest in wihout looking at the balance sheet WTF. Unless he meant look at the ESG score first and if they have a high score dont bother looking at the rest just avoid like the plague. Worked well for bud and target both companies i would never invest in
This is sickening !!
Avoiding badly run companies or companies with serious sacandals huh... Blizzard Activaision must not count.
Just says no to esg
where did ESG come from? Who decided this has to exist now? it sounds like some vague nebulous thing that's not really needed and I would like to know where it comes from.
ESG is a great tool for me. The higher tour score the less likely you will ever work for me.
This is very disturbing. It's amazing how stupid humans are.
Is this why more have invested in cryptocurrencies?
Probably the only way out of the coming woke dystopia.
In Australia - Hey Dad - he got out of jail - and at the same time Australia has a gas shortage - is there a connection - hey dad - where is the fkin gas ya chunt? ha ha
I have a fair bit of gas myself! come around and I ll hook you up!
One way to destroy freedom.
Wasn’t ESG partially responsible for what happened to Sri Lankan?
Wow! These companies wont survive a year!
SOBA made me watch this😮💨
Who’s chooses what’s good. It’s politics taking over the market you know communism.
ESG is nightmarish. Locales will be negatively impacted, while a few chosen "winners" will temporarily be shored up, while the long term downtrend of the industry continues. Likely by design, incentivizing to control, subverting both the legislation and economics.
Look into what is happening to the Dutch farmers
Should care...
If you want to get broke.
i invest along my values of maximizing profit
✒ Modern Finance 😀 smart beta 🌟
ESG Companies will be boycotted
6 months later, YOU WERE RIGHT !
@@d.owczarzak6888 👍
Going through the comments, NOT ONE PERSON in the first 25 (I stopped looking after that) comments is for this horse shit policy.
FTX had a High ESG score Keep That In mind
Go woke, go broke. The market has been doing the extract opposite of all these type of guys predictions. I'm hyper skeptical with this and find a lot of the concepts really sketch. 🤔 I don't buy it yet.
ask the dutch farmers and the people in sri lanka how this bullshit is going
@Heavy Metal Pulp no not just them everybody on earth is hurt by this esg nonsense i was just giving a couple of examples
China has been playing like this for awhile.
Great Green Economy