The Rise Of ESG Investing

ESG is a catch-all term for investing strategies that consider a company’s environmental, social and governance factors. ESG investing is predicted to surge following the coronavirus pandemic and demonstrations over racial justice. Consumers and Wall Street investors alike are increasingly holding companies accountable for their performance on environmental, social and governance benchmarks-or ESG, for short. Here's how ESG investing could transform the financial and business industry.
Before the police killing of George Floyd in Minnesota and before Covid-19 forced corporate America into lockdown, companies were being singled out for social responsibility.
It’s a trend that began to accelerate well before the current crises, and has now gone mainstream.
“Investors were really flocking to ESG strategies,” said Valerie Grant, senior portfolio manager of responsible investing at AllianceBernstein. “For ETFs, there were $8 billion inflows into ESG strategies. And for mainstream funds, the flows were $12 billion.”
While critics have called ESG investing vague and even a fraud, analysts predict it will double in 2020 and become integrated into the investment decisions of every investor.
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The Rise Of Socially Conscious Investing

[@gaozhi2007]

ONE BANK to rule them all, one bank to find them. ONE BANK to rank them all and in the darkness bind them!!

[@TheLifePhoenix]

LAWYER TALK.... but we know how to read between the lines. These good “priorities” have been presented as if we all agree on them. The agenda and narrative will bleed in how ever they make it, because it’s not about us. It’s about them and their $$$ In the land of the blind, the one-eyed man is king

[@skenzyme81]

We only invest in companies in the bottom quartile of ESG scores.

[@timileyinajuwon6005]

Why?

[@billbillerton6122]

@@timileyinajuwon6005 Why use the metric at all?

[@chudchadanstud]

@@timileyinajuwon6005 They're profitable

[@Gr8dane85]

Ask Anheuser Busch about the dangers of focusing on their ESG rating.

[@mariorobertocueto4531]

BML leader buys mansions with donations haha what hypocrites

[@ycartyahoo]

BLM

[@quarters-eye8922]

ESG investing ?!! 😅 That’s a joke.

[@Douken]

ESG doesn’t make money to investors.

[@FarmingUnclear]

go woke...

[@geraldvance7925]

​@@FarmingUnclearGo broke.. 😅

[@Lifeissorich.]

ESG investing is a waste considering that a lot of returns come from non socially responsible companies like Altria.

[@janejones3170]

Why don’t big corporations just pay their taxes instead of keeping it in tax havens and paying less than I do

[@ganger631]

Not sure if you're just unaware, or just disabled. Companies pay the legal amount in which they are obligated to pay.....

[@mfax1000]

I get what you are saying. The tax laws must be changed by Congress.

[@ashdraked]

They pay much more than you do

[@markkram74]

13:37 Yep that's me your skilled worker, I can relate.

[@rohit.iyengar]

hahahaha, realistic stock footage

[@vernonhedge4530]

CRINGE!

[@MickyAvStickyHands]

Mixing numbers with emotions goes against every planetary law in the galaxy. 2+2=4 regardless of politics. Companies will go were the money is, period. I hope is goes to sustainable energy, but I can't ask companies to lose money doing it. That's like wishing Santa was real.

[@groob33]

Get Woke, Go Broke.

[@novellive7848]

how to run small companies without tax

[@zyfigamer]

This is like the infant stage of the mythical market alternative to regulation that some people talk about.

[@robertchristensen9949]

It is coming

[@irasanchez1265]

it's just people getting creative with what is already present and available.

[@zyfigamer]

@@irasanchez1265 Right but now companies are willingly being transparent. They're incentivized, and that's a big improvement.

[@DragonZombie2000]

​@@zyfigamer imagine being this naive

[@tonyotag]

ESG investing? Sounds like practical fascism enforcement. Corporations as Government rather than goverment regulating Corporations and the citizens (as human beings) having practical impact on the rules of corporations per voting in goverment.

[@zizzyzozo807]

So many buzzwords. so little action.

[@gdcforlife]

Looks like a black mirror episode

[@skenzyme81]

So corporate wokeness is an empty smokescreen because it’s the easiest to game?

[@IM1THE2KING3]

Polling. All in calls or puts this week?

[@thetaingsto]

This is so stupid and I can't believe I have to learn about that to get a job as an asset manager..

[@ShanGamer1981]

Trying to act like they care

[@6pistons]

This smells of MONEY!!!!! nothing is going to change.

[@markdawson9094]

Sweatshop Lives Matter

[@ArtieStrongManMusic]

joe rogan anyone?

[@georgiamaguire692]

This is BS. We are in the process of moving our money right now. Just have to find a banking institution that doesn’t follow this ESG criteria. I am a minority female millennium as well. I can’t have this. Smh people better wake the hell up.

[@conductor6577]

Biden is forcing ESG into your retirement plan. This will make it even harder for you to retire. Good luck!

[@matrix2678]

big companies have all regulatory systems in their pockets, esg is not for all

[@amevaio92]

racism happens everywhere and it’s not just an issue in the states. it happens to my country but the one who is being intimidated is the “whites” or the majority in this country

[@thevinceberry]

South Africa?

[@adan3956]

Racism cannot truly end. You can only minimize them. We have succeeded in the US, we reduced them to little embers. But since the wokes showed up, it fans the flame, and now they're showing signs of burning again

[@JR_SupportOurHeroes]

​@@thevinceberryI watched the documentary about South Africa it's so sad how much is happening

[@geraldvance7925]

Well this video didn't age well. ESG is a scam. Companies are starting to figure that out now.

[@wildchangjr.8998]

I feel like this is a gimmick.

[@vernonhedge4530]

Worse, it's a ruse, a full blown greasy, malevolent con.

[@jan2000nl]

Yeah. How’s that ESG working out?

[@markkram74]

6:32 the loan magnet guy,

[@ashdraked]

Vid needs more doslikes

[@Anthony-tr7gm]

Corporate Propaganda

[@braveshine2579]

5:16

[@unassumingaccount395]

The terms "investing" and "morals" never go well together

[@iceman18211]

The broad statistical consensus would disagree with that statement. Look up the article "Doing the Right Thing Is Just Profitable" Here’s what its most recent study found: Stock market indexes based on the leaders of JUST Capital’s 2016 rankings outperformed the Russell 1000 index throughout the decade ending in 2016 within a range of 1-4 percentage-points. And 1-4% higher returns a year is ridiculously high. Based on the average sandp return of 7% a year.

[@unassumingaccount395]

@@iceman18211 Gee wish capitalists figured out how to not do tax fraud and high frequency trading years ago 😒

[@iceman18211]

@@unassumingaccount395 as someone who did a lot of research on HFT investing, it should not be illegal. The problem actually ended up solving itself once it became common knowledge and technology and software caught up. People with faster networks have always been better investors. Going back to Napoleon. The tax fraud is a dubious claim, off shore investing is not illegal in many countries. The problem is with the law, not the people trying to minimize their taxable income. By your logic using a 401K should be illegal because people should be paying the maximum tax rate on capital gains.

[@stevenlarson3316]

People are starting to realize that there's a price beyond what they pay in dollars for products. Trade with the trend.

[@unassumingaccount395]

@@iceman18211 Seems sensible, offshore investing is still a major problem and I really don't see how conscious capitalism is in the rise when investors contributed to stuff like a wework bubble and the 2008 financial crisis, which affects people to this day. If conscious capitalism is really on the rise, then good, but I still can't see the idea given those circumstances.

[@John-li2dc]

Stonks only go up with printers going brrrr

[@facitenonvictimarum174]

Ha! You can't be "socially conscious" without a conscience, which most investors don't have, or they wouldn't be so freakin' obsessed with getting filthy rich.

[@facitenonvictimarum174]

Where money-worshiping isn't an obsession, it's a sociopathic religion and a culture, which is even worse.

[@louis8935]

Why the small views

[@chadwickhjones]

Support the creation of a global #CapAndTrade market. If you INCENTIVIZE responsible decisions in the market, then the free market will focus on that. Right now, there's not incentive, but random people somehow remain surprised that big companies don't make responsible choices. Why would they?

[@etiennelamole9565]

Chadwick Jones Norway owns a public sovereign fund of 1 TRILLION dollars, and only does ESG investments. I really don’t know how they could make better use of their wealth

[@letsgobrandon791]

You and i have different responsibilities and make different decisions. These dictate your decisions and responsibilities. I’ll stay free. China can keep this

[@letsgobrandon791]

@@etiennelamole9565 norway has a smaller population that LA. But good for them

[@conductor6577]

An ETF that goes against ESG will likely beat the S&P 500 hands down! My retirement shouldn’t be used as an experiment for activists to play with. If activist are that concern let them put all their money into failing projects.

[@Shahharsh3010]

Socially responsible investors till now were called Impact Investors. This was a niche segment and is now becoming more and more mainstream. Capitalism across the world has to start evaluating businesses on stakeholder value rather than shareholder value.

[@Douken]

Disagree. ESG does not make money for investors.

[@sleepless2541]

@@Douken ben felix did a video on ESG investing, he mentioned a tradeoff between expected return and social impacts, so yeah might not be beneficial to investors but if you wanted to save the environment and all that then it's a tradeoff one must take

[@baraka629]

Hopefully this segment gets yeeted off into the fringes of society where it belongs.

[@basteagui]

@@sleepless2541 lmao, no.

[@watomb]

I would be happy if my investment make money

[@FinancialShinanigan]

Social conscious investing is an oxymoron.

[@RK-jc8oe]

I invest my money to provide me the best returns for my retirement. If you want poor returns then invest in ESG … knock your socks off. Not interested. I will invest my own money the way I want to, not someone telling me how to invest my money.

[@frufrufrufru1999]

1:00 Are we going to ignore apple donating 100 mil?

[@bdr1414TV]

Basically companies realized that the best results comes from everyone in the group working for the benefit of the individual and the benefit of the group Game Theory wins again

[@marciojose1973]

And Cancel Culture destroys your Freedom and Life! yaaaaaaayyy!!!!

[@MoonlitGamer]

@@marciojose1973 name one destroyed freedom? If you say free speech, what aren't you allowed to say?

[@marciojose1973]

@@MoonlitGamer . Freedom to live without self righteous moralists like you defecating rules all the time.

[@letsgobrandon791]

So companies dictate how you should and will live. If you want to live

[@marciojose1973]

@@letsgobrandon791 . If THEY want you to live...hahahahah

[@jinavlog811]

An esg first strategy for companies is gonna be essential ???

[@briandavis849]

no, it’s a silly marketing gimmick that will fizzle out fairly quick when their returns are garbage.

[@hyacynthiakesuma5797]

I have been studying about ESG integration in financial valuation, but apparently my country Indonesia has not implemented it generally. Hence, it is a challenge for us to valuate public companies when especially they have not published their sustainability report. Our sustainability report, at least, some reports I have seen do not meet the standards held by GRI.

[@slee8601]

It is common in developing countries. They usually take growth over ESG. As the countries get richer, social standard changes. In South Korea I witness about 10 years of discrepancy between Wall Street standard and the reality of South Korean financial market. There used to be bigger discrepancy though. It will get better over time but applying American standard sometimes just does not work.

[@doityourself2save]

Stay clear from ESG if you can. If your company can finance their own operations...do so!

[@georgiamaguire692]

That’s a great thing. Don’t fall for this, this is communist China bs social credit scoring. They are trapping us.

[@Douken]

You can value it on the goods it trades and its assets. Do not need to re-invent the wheel.

[@kristiandanang6754]

Nampaknya ESG di Indonesia mulai ramai sekarang. Banyak webinar dan pelatihan tentang ESG, banyak pejabat juga mulai mulai jargon-jargon ESG di setiap speech mereka.

[@olegariocamara9308]

Well, after 3 years, how is that ESG investing fad doing?

[@alonezlciel]

I don't mind company implement ESG strategy, but at least they should do it smart. I saw tons of shallow policies that end up hurting every stakeholders.

[@jtsshieh]

Hi

[@joachims5367]

It will be forever more or less the same in a very free capitalistic market. Social and environmental friendly investments have less return and people naturally invest where they get the best risk/return ratio. If we want to achieve the changes we urgently need, it is time for the head of all countries to takle the larger problems we have collected the last few decades. To beleive people and companies will change their investment and consumption behavier without enought stimulus is naiv.

[@lukacspolgar5988]

You underestimate the power of the woke mob

[@joshhoward1289]

This is nothing but a power grab to support woke ideologies. “Cultural” and “government” scores…give me a break. This is a pay-to-play system.

[@desmondclark3193]

Wtf did I just watch?!

[@vedantkabra1898]

It's relatively boring as compared to the other CNBC videos. Could have made the topic a bit more interesting for the viewers.

[@jzk2020]

This video is about 10 min. too long.

[@GearReviewDepot]

Pathetic. It should be the rise of facts, reason, evidence and more importantly... personal responsibility. 🇺🇸🇺🇸🇺🇸

[@PoltergeistHC4L]

I don't understand a thing

[@tomharrison6607]

esg elites slimey grift blm buying lovely mansions

[@godfreymchunguzioyema6351]

Excellent overview of ESG Issues. Main issue challenging ESG as of now is the fact that in most cases ESG is still viewed by many investors as a voluntary thing for investment. I wouldn't blame them though because even ESG standards for auditing, rating and reporting are diverse and so different across sectors, corporations and companies. Not having one common strategy to govern ESG process it complicates the whole issue. But as an ESG Expert I am of the opinion that ESG Investing is providing a new window to learn and adjust businesses from business as usual to a more and sustainable business. To achieve ESG Goals, surely we need integrated ESG standards for auditing, scoring and reporting such as those developed by SABS

[@conductor6577]

ESG has low returns on investment and unless the government wants to pay the lost profits back to investors. I will do everything in my power to avoid ESG like cancer. The only thing I care about investments is making the “maximum returns” that’s it!

[@yay-cat]

It would be amazing if you could get a neutral company to audit do ESG type businesses but instead of giving a single figure score, you let investors, like millennials saving for retirement, select amongst the criteria that they care most about. Jane cares about the oceans but is unphased by casinos, john likes orangutans and cares about unsustainable palm oil but doesn’t really care about who’s on the board of directors of the company. I wouldn’t mind if some of my savings is invested into local wine farms but my muslim neighbor would not want to have alcohol related products in their “portfolio”. You want to be able to vote with your money about the things you care about, but for that portfolios need to be as unique as the individuals they represent. I hate that my RA savings means that I am a small part of the “only for profit” investors of slow to change mega-corporations that are the faceless evil (no individual accountability) that is responsible for driving climate change, probably negatively affecting my own working conditions, and lobbying for policy that I don’t support. Humanity being its own worst enemy. I see this is a bit dramatic but I want my small vote and I’ll be willing to take a little cut to my interest rates. Let all these genius actuarial bankers be worth their salt and direct their skills to a service like this rather than blindly being the enablers of the worst of human nature.

[@quarters-eye8922]

ESG “ Investing “ is a reckless scam. Only an idiot would put their money into a sinking ship. Don’t be stupid.

[@ningthegreat]

Great video! Highlights the importance of being socially responsible in this time of trouble - we need to band together as a community and focus on creating a sustainable and equitable life for our younger generations.

[@inconvenientexistenlism]

Good, then go ahead and sell all of your possessions and give all of your money to the younger generation, rather than ask other people for money or expect others to do it.

[@jeffreysmith4586]

Agreed, companies that are socialy responsible will be more successful in the long run. TSLA!

[@windskm]

Yawn

[@kkhunt7]

This is actually going to lead to fascism and social credit scores. This system would prevent people from getting loans and starting independent businesses that don't fit the authoritarian ESG worldview. It's an excuse to rig the market. Basically the one's running the ESG standards/rating will operate as government regulating people's lives. The WEF proposes global fascism are this ESG crap is the start.

[@billbillerton6122]

@@kkhunt7 You're absolutely right. I no longer care about being eloquent myself. I just want my open contempt made aware to let them know that I see through them. I don't care about a conversation with them, it's a pointless fruitless endeavor. They're woke zombies.

[@Marinealver]

Forget Sesame Credit, this is the New World Currency.

[@rahulroy2996]

there is only one kind of investment that makes money.

[@iceman18211]

Disagree, there are many industries and many investment ideologies. Short selling is a great example. For a decade Jim Chanos and his ilk have bled money but in a crash they're called geniuses and are on CNBC 3 times a day. You can invest for capital gains or for cashflow. You can use your gut or statistical models. you can have 1% yearly returns or 50% yearly returns. Not all investments are created equal, not by a long shot.

[@thegreat9481]

Its a gimmick lol just give me a cap weighted index of the stocks of the world. This is not a feel good story.

[@auro1986]

cnbc wants investment?

[@eagles2249]

if you bring morals into investing you are going to set yourself up for failure

[@iceman18211]

Disagree, there are many industries and many investment ideologies. Short selling is a great example. For a decade Jim Chanos and his ilk have bled money but in a crash they're called geniuses and are on CNBC 3 times a day. You can invest for capital gains or for cashflow. You can use your gut or statistical models. you can have 1% yearly returns or 50% yearly returns. Not all investments are created equal, not by a long shot.

[@ExcessumGaming]

You will also destroy the word and stop innovation.

[@TankDerek]

@@ExcessumGaming It definitely won't stop innovation, it will sinply drive innovation in new directions. Maybe not the way you personally prefer, but that's the great thing about the marketplace. If there's a niche someone is probably looking to fill it.

[@billbillerton6122]

@@TankDerek Sounds like Marxist manipulation. A disease taking hold.

[@vooteimer1234]

Happens to coincide with the fall of fiscally responsible investing

[@iceman18211]

Disagree

[@michaeld9682]

Pure evil

[@mastertcoaching4785]

Pandering

[@walther9161]

The biggest devaluation of wealth in history.

[@venkatkrishna1034]

most useful analysis

[@rd9102]

Get woke, Go broke! Screw ESG investing. Now if it was EG investing...i am on board for that. LOL 20 trillion dollars...someone is smoking THE BIGGEST BONG EVER!

[@wonggresik9231]

Demo terus

[@manwrite3955]

Wait... There's slave owners on dollars... Lol America!

[@eyeofthetiger7]

Without them the world would most definitely not be mostly democracy and the concept of a bill of rights and human rights would be nothing more than talk.

[@stacyelliott2577]

People will be kicking themselves in few weeks if they miss the opportunity to buy and invest in bitcoin.

[@bobbywilliams2396]

Having money invested in bitcoin/cryptocurrency is probably one of the most financially wise decisions anyone should make ...cos your money works for you thereby multiplying it's value.

[@raymondorwell9441]

Bitcoin trading right now will be at every wise individuals list. In few minutes you'll be ecstatic with the decision you made today.

[@AngelaRodriguez-mi2zi]

Bitcoin trading nowadays is a big chance to make money.

[@solomonwalter9499]

Stocks are good crypto is better.

[@marcusbradley3448]

I wanted to trade crypto but I got confused by the fluctuation in price.

[@saulgoodman2018]

virtue signaling.

[@TankDerek]

Who's it signalling to? My broker? I really don't think they gave a toss before.

[@imani828]

0:40 - it says "Pull-up OR shut-up" you liars

[@gustavvonashenbach8907]

what about stopping investing in anything related to America considering the illegal wars they get themselves into. I would like to American companies removed from investment portfolios.

[@grzegorzjuchniewicz7158]

This programme is a joke. There is nothing about solving social problems, For instance, What this got to do with investments within the space of longevity genomics ? personalise medicine, so we can design new education system that tackle social problems, fulfil the needs of the society, eliminate chronic diseases included ageing, reduce healthcare burden on personal and national budgets, or eliminate pain and suffering and pension system and divert capital into other productive parts of economy more efficiently. There is lack of info how to divert fiscal policy, tax policy and generational capital into the space medical research as the most important problem within society.

[@techandfinanceshow7081]

No black no white, EVERY LIFE MATTERS

[@thechad5944]

In the global context, this will work. However, if we use this kind of narrative in the United States, where black communities have been suffering significant racial injustice for generations disproportionately than the white population, then it dilutes the fight for justice for the people who is deprived of it the most - African-Americans and other communities of color. So please consider reexamining this kind of blanket statements. Have a good day ahead. :)

[@billbillerton6122]

@@thechad5944 This has no place in the marketplace.

[@gmanon1181]

This response from businesses should be an eye opener to Afro-Americans. Major companies want a bigger participation of diversity. The question is how to start the conversation on how to bridge opportunitits for more diverse talent who don't even contemplate the possibility to ever going to top colleges.

[@patersonfc]

Cnbc we're looking at you - time to hire some black folks

This look super fake.

[@Akash_158]

First

[@Kushagra.j]

Making money and investing in a socially responsible manner are opposites. Such funds are only run by Feminists & gays . What do u want more, to become rich or to save climate,etc. If your answer isn't to become rich then you'll be a failure in the financial markets.

[@eagles2249]

they make this stuff to keep people from making money in investing and keep the middile class stuck and the rich richer

[@beebeejoo]

People are hitting thumbs down because Trump voters view having a human conscience as a liability

[@billbillerton6122]

It has no place in business. Woke companies deserve to go down in flames.

[@MsLacy707]

Fk this. Companies need to pay the Reparations that positioned them financially. Anything else is just a continuance of the sham and original crime.

[@ProfessionalTycoons]

This is very good, a good side of Capitalism

[@vernonhedge4530]

Sorry, you are being very gullible. It's a power grab by the very rich.

[@jenanepadmanabhan568]

First