Vanguard is one of the world’s three largest Index Fund managers and one of the three ESG Net-Zero groups. The other two are Black Rock and State Street. They are defecting from ESG. They claim they want to maintain freedom and not limit investment options. This came after Consumers First exposed their potential anti-trust violations.
Bloomberg reports that after a “considerable” review, the firm said the “pledge to net-zero led to investor confusion.”
Vanguard Group Inc. is walking out of the world’s largest climate-finance alliance – Glasgow Financial Alliance for Net Zero – marking the coalition’s biggest defection to date as US Republicans step up their threats against firms deemed hostile toward the fossil-fuel industry.
Kristen Snow Spalding, vice president of the Ceres Investor Network and a founding partner of the Net Zero Asset Managers initiative says the problem is political pressure.
GOP politicians plan to ratchet up their attacks on anti-oil or woke firms. They are planning congressional hearings, and several anti-ESG bills will soon be released.
Earlier this year, two pension firms and an investment consultant dropped out of GFANZ. That coincided with reports that JPMorgan Chase & Co., Bank of America Corp., and Morgan Stanley were mulling defection after a requirement “to phase down and out unabated fossil fuels, including coal” was introduced by Race to Zero, the UN-backed entity that underpins GFANZ.
There are serious legal risks if a “bank or asset manager claims they intend to reach net zero by a given date and then realizes it won’t make that goal, they are in danger of FTC enforcement action. Significant investigative and litigation costs, fines, and negative publicity could follow.
The ESG investments aren’t paying well, and the ESG goal is to control investments according to extreme left-wing ideas.
Legal Insurrection writes:
ESG forces companies to make fuel and operational choices that might not be the best match for their operations. The documentation requires staff to describe in tedious detail how it is complying with a myriad of regulatory requirements and crunching a massive amount of data to prove it is doing (despite passing compliance inspections and audits from the interested agencies). ESG also forces companies to demonstrate that the company is checking off every progressive social-wish-list item, the choice of which should be at the company’s discretion based on its profits, the actual expenses, and the employees’ needs and priorities.
There are also significant anti-trust issues. Vanguard was allowed to buy shares in a public utility but promised to be passive investors. They have not been passive.
Will Held, President of Consumers First, exposed Vanguard for pushing the ESG agenda onto American Utility companies. That’s when Vanguard decided to leave the net-zero alliance.
.@ArthurBrooks on corporations going woke:
“We need to tell CEOs…3% of your employees are activists…blowing up your Slack demanding that you get involved in a culture war and make political statements. Don’t do it. The rest of your employees are feeling bullied as well…” pic.twitter.com/pGCm5AzKXY
— Will Hild (@WillHild) November 30, 2022
Texas, Louisiana, and Missouri have withdrawn all their investors’ funds from Black Rock for misusing funds to push an agenda.
J Morgan Chase CEO Jamie Dimon said “the effects of ESG-driven, elevated energy prices are leading to more CO2…All that’s happening around the world is that poorer and richer nations are turning back on their coal plants.”
ESG is just a backdoor system through which far-left activists try to force through their agenda that they can’t pass at the ballot box: pic.twitter.com/EiRAneMfMX
— Will Hild (@WillHild) December 2, 2022