Governor Newsom’s ESG Errors

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California Gov. Gavin Newsom this week released a lengthy commentary defending so-called ESG investing, which he wrote has “proven results.” His defense requires fact checking and context.

Environmental, Social and Governance (ESG) is the latest investing trend that claims investors can earn higher returns while also “doing good” on important social issues such as a company’s impact on the environment or how it treats its workers.

According to Newsom, ESG investing “prioritizes sustainability, invests in technologies of the future, and factors in the risks associated with climate change–wildfires, floods, hurricanes, and droughts.” These claims are simply untrue.

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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