ESG Ratings Are Not What They Seem
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- Опубліковано 19 гру 2021
- MSCI, the largest ESG rating company, doesn’t even try to measure the impact of a corporation on the world. It’s all about whether the world might mess with the bottom line.
#ESG #Storylines #BloombergQuicktake
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Learn more about MSCI, the largest ESG rating company: www.bloomberg.com/graphics/2021-what-is-esg-investing-msci-ratings-focus-on-corporate-bottom-line/
Lol, ESG... the next big financial scam. Who's surprised? Not me.
Kinda missed the whole identity politics part. It's pretty inflammatory behavior, even traitorous, to try to turn people on each other to further the agenda of the WEF. Not gonna mention that part? This kind of treachery will backfire spectacularly on the people trying to perpetuate it.
Where is MSCI’s ESG list?
ESG is why every company went woke at the same time. They care more about institutional investors than customers.
Spot on
That's why I call the woke movement "corporate/state approved activism"
the left used to be anti establishment, now they love the corporate elite for sharing their beliefs, not realising that they are being manipulated to conform and consume.
Seems to be the truth. I was confused though from this video when the founder of MSCI said the idea for ESG was to keep out socialism from business. With companies going woke didn't it have the exact opposite effect?
Yeah they pretty much miscalculated thinking they’d on board more people, but instead they invented “Get woke, go broke” 😂
Disney, Amazon and numerous other companies as well as the American government and maybe even the entire western civilization are now feeling the pain of corporate greed.
So, basically one rainmaker like Blackrock can control the entire planet politics with ESG and without going into details or without talking to anyone in personal, pretty brilliant.
Yepp 😢😢😢😢
Basically BlackRock pulling the puppet strings
This is some really terrifying, Orwellian stuff.
This video is brilliant. Companies hide behind ESG without meeting the main goals of what ESG was created for.
not true ESG was created to destroy small companies , and it is working
Yeah. Real Communism just cant be archieved. All you get is destruction!
If by what ESG was created for you mean forcing capitulation to the elitest, globalist, authoritarian agenda...
BINGO!!! Smoke and mirrors 😅
I want a list of companies that aren't complying with the ESGs so that I can use their products and services.
Then you are lucky, now you can buy a Tesla based on that criteria.
@@andrasbiro3007 Nah I'll stick with gasoline. Maybe I'll switch over to alcohol.
AGREED !
Have you heard about the Stride AM?
Has anyone found a list??
These bloomberg QT are some of the most enlightening videos on the world of finance, I always learn something new or at least obtain a new perspective. PLEASE continue this high quality content!!
Shout outs to Bloomberg for having open comment sections as well, unlike other reporters
So, ESG is just a trick to get a higher MSCI credit for a company.
ESG is just another term for social credit score. And no, you cannot change my mind.
So you rather put your money in companies that don't treat their employees fairly and pollute the environment in order to make higher profits?
@@jason.vasilevok, bot.
@@jason.vasilev you can do all that stuff without a subjective, unregulated system like ESG
@@jjhh320 jason.vasilev is a bot
@@jason.vasilev yes I would. At least I can be sure they aren't trying to scam me like one that has a high ESG score.
Glad to see a major media network call out a major financial influencer
But why would they?
It's sus
@@jayoven3670 because they are a competing esg rater. It says so in the disclaimer at the end of the video.
@@1980jwtx I'm guessing that's why the CEO of MSCI claiming ESG "protects capitalism" wasn't specifically challenged.
It’s still presented with a spin. ‘They’re not doing enough to “save” the planet!’
@@littlebird3495seems like a massive smokescreen … lots of blah blah while subtly giving little people climate guilt.
Call your state legislators and tell them you are against ESG Scoring and they need to make laws against it being used
15+ RED states have legalized Anti Woke Bills. In Florida that bill goes further. It has banned the teaching of woke curricula in states schools and Uni
Green is the new market gimmick to make more greens.
We should be rating companies for other more important things, like how healthy are the products they are selling.
There are attempts at that in the EU, but since these scores are voluntary, its hard to get companies to comply with them (the Nutriscore is one example). It would be very hard to implement these in the US, corporate lobbying is too strong here
If an ESG score is subjective and unregulated, why would it have any value with investors?
The investor invest their money through giant investment companies like blackrock that invest based on ESG...at least thats the way I understand it now. Have to read more to fully understand whats going on behind thw system
Its a scam thats why.
@@DePeaceHunterWhat did you find?
It's just a way to oppress those that aren't loyal to your sick goals, or that could be competition.
I refuse to believe that the average Joe or average business owner pushed for the ESG ratings
It's more about big companies, not average
My name is Joe, I'm average and I was happy about the idea of ESG ratings. Believe it or not, I do care about the world around me. I even put a little money into an ESG fund. But most of my small wealth is invested otherwise.
@@lukasschreiber5759 Triple context > ESG
This is horrific.
This was one of the best bloomberg pieces ever. Keep it up reporters, i respect reporters even more now.
Confirming my suspicion that ESG is just another corporate gimmick.
Worse than that. It is politicized to advance social agenda
Gaming ratings is not new, all of finance does it, they're just shifting their skills in adjusting conclusions towards meeting financial KPIs to ESG KPIs
Thank you Bloomberg QT team for pointing out the game
The Rotten Tomatoes of finance, in more ways than one.
Well its ESG, they could focus on the S and G and still meet their mandate . Hence defining esg is key
the S and G are the problem.
Before ESG, there was the triple context and there was no governance or "social" aspect to it and it was never regulated or quantified.
Fabulous! Thank you for the info. I love this style of mini docs.
The world is full of foxes whose outsmarting the lambs.
The only environment they care about is their own environment.
I appreciate this investigation but Bloomberg the company provides financial information on stocks to the general public and industry so if they really believe there is a problem with these msci ratings, they should not promote them on their website, indexes, and Bloomberg terminal. They're a giant influential company. They're part of the problem and yet they put out this piece of journalism as if they're saying "well we did all we could" 🤷
The reason why scores change that much is very very simple... The initial scores are based on public information, and rating agencies anlayze specific wording, most companies don't know this, and don't disclose every piece of information online. Even if they do so, they have no idea what are the requirements for rating agency methodologies. The entire score is a process of feedback rounds, and internal information exchanges, they sent documents that are not online, and so on. While rating agencies are adjusting the scores based on relevance and industry impact.
Hire a couple Diversity-Inclusivity-Equity commissar for a quarter million a pop per year, and your score will go up.
Excellent investigation
This is kinda scary
"kinda?"
Constant references to ESG and I'm here sitting and thinking 'what the hell is ESG?'
It's not until after two minutes that the abbreviation is actually spelled out, albeit not explicitly, and even then no definition.
To actually understand this video, you need prior knowledge of ESG. This is unfortunate.
"Environmental and Social Governance" scores.
Right, all companies should follow some journalists’ moral guidelines when doing business
Brilliant content.
The global economy cannot be optimized on that scale with that approach.
This seems to highlight why tracking Scope 2 and Scope 3 emissions is so important, just as one example of where these ratings fail. Companies like McDonalds don't own the cattle raising operations that they purchase from, so they can technically claim no direct impact from those operations.
Wouldn't that mean that it's counted twice? Once by the cattle rasing operation and another by McDonald's?
@@luismalave1151 yes scope 3 involves double counting, but it’s not used as a metric to calculate total existing GHG emissions, but instead to understand total company supply chain emissions.
Currently not many companies track their emissions so mcdonalds isn’t able to ask the cattle producer how many emissions were created by their cattle during production.
Scope 1, 2, 3 will be changed in the future to amend for this double counting issue. Currently it’s such a new methodology that it hasn’t had enough time or competition invested to innovate and improve much.
Thanks guys. It shed new light regarding this impirtant issue.
eye-opening. I don't understand how investors would still believe in MSCI ESG ratings when that man blatantly implied publicly that it isn't really about environment or social issues but just another way for companies to continue being their oblivious-selves while keeping any regulatory eye away from them.
I have worked hard for 35 years to build my investment portfolio. The first and foremost strategy I employ to protect my investments is to avoid companies with ESG ratings and goals. I prefer companies that are mostly concerned about profits, and strive to stay out of globalist politics.
Boycott all ESG companies , they all need to feel there bottom line disappearing
I am currently studying ESG rating and I must say that this video by far was explained well. Something I would like to add here, many companies in the first hand are not aware of ESG and the value it can generate shortly. A framework and transparency is much needed.
We've already crossed the 2 degree Celsius mark and in the world of capitalism, we never know where the money's going and this inefficiency has dried out our lands, polluted our waters etc. which are public goods and by no means anyone's property to destroy.
This video is simply brilliant
I do not agree. They could have started by defining what an ESG rating was
So who's going to make sure these ESG raters not receiving bribery?
This is an amazing investigation. Please create a playlist of such high quality investigations, it will make it easier to share it with others.
😅be 🎉❤🎉😅😂❤🎉🎉😮😅😢😅
It's also related to social governance so comparing those metrics to environmental ones doesn't allow for a fair representation of ESG measures
ESG is woke Shibboleths!
ESG is about power and control over you!
Fantastic video!!!!
This ESG … BS has been something I’ve been studying since I found the definition.
I work for a huge worldwide company that went full on ESG about 8-9 years ago. In my plant it’s been devastating to productivity ! Thus devastating to profits!
Shell has an AA rating
Your example is a small look at how the climate change argument has no legitimacy.
oil money buys green ratings
Tesla has a worse rating than gas guzzling BMW because Tesla Motors dors not pander enough politically and the CEO is politically wrong.
Unregulated indeed
Ok... so I was expecting it to be some niche billion dollars company I'd never heard about... but it's FUCKING MSCI.....
This was really unbiased and fair take on the problems of ESG.
Should have led with the disclosure.
Extremely important take on the impact and misleading title of ESG ratings. Really concerned about how the regulators are going to respond or can change anything substantially in the next years since time is running fast
Who are the regulators? The State?
WEF
Dystopian
LOL when every time you hear the words ESG and SUSTAINABILITY you notice things like "your score is higher if you support women who used to be men" or "why does every product with SUSTAINABILITY written on it contain CRICKET FLOUR (BUGS)", SOMETHING IS WRONG with ESG and SUSTAINABILITY.
H&M Conscious… just BRILLIANT marketing!
ESG, is politics and shouldn't influence markets. It should not withhold capital from carbon energy or nuclear based on their desire to control global energy and, hence,, food and everything else.
This should be the top comment.
You just need to see the MSCI intervention on minute 7:38 to get the whole picture....this video is 100% supported past that moment.
Another reason why ESG doesnt work? How can a cigarette company have one of the highest ESG rating while a company like Tesla be one of the lowest?
ESG is another psyop
Thank you for this deeply informative video.
You're telling me you can take advantage of people's values and laziness? When did this happen?!?
Of course McDnalds declined to comment on their crookery.
You know that ESG scores are a scam when Exxon has a higher ESG rating than Tesla. The EV industry overall is loved by progressives, but because Elon Musk is Tesla's CEO, their ESG rating takes a dive while Exxon Mobile has TV ads with butterflies.
This was a very informative video, it touched on ESG in a direction I wasn't paying attention to - which is the 'E'.
If ESG scores can be set and changed so arbitrarily then eventually the only incentive for companies will be to obey those who make the ratings, rather than focusing on any supposed 'change'.
This is of course disregarding the question of whether or not these scores--which are dictated and enforced by an extremely small group of billionares on the rest of the market and society--should exist at all, personally I think not, they seem disconnected from a companys profitability and assumes that it's ratings and metrics make a company better, which is insane and baseless.
This is what we need. More awareness. Thanks Bloomberg QT.
my takeaway from this is to pick companies highly rated by, say, corporate knights, but that actually are involved in sustainability. this would certainly NOT include companies like mcdonalds. why anyone interested in SRI would pick a corporation whose product is a major source of health issues is beyond me
What a nightmare this is
If only they could make meaningful measurements. Hybrids are better for the environment by far than fully electric vehicles, and yet Tesla is viewed as a green company.
Local sourcing and manufacturing is far better for the environment than shipping everything from Asia. So are American-made products getting a better score?
Then there’s planned and designed obsolescence which Corporate America engages in relentlessly. Apple is a prime example with the way they make more and more pieces of products unserviceable. Their cpus, video cards, and memory chips are all soldered to the motherboard so if one item fails, you have to replace the whole thing. Their AirPod batteries can’t be serviced so instead of replacing a $1 battery, you pay $100-180 for a new set. And they’re a “progressive” company. And many, many companies do this. Just think of the phrase, “They don’t make ‘em like they used to.” We’ve broken a pair of kitchen shears, then after losing another, my grandmother gave us her German-steel wedding present kitchen shears (from the 1930s or 40s) and they are incredible! But someone is loathing those shears because it meant we aren’t buying ten new ones over the course of our lives now. You don’t have to make the best possible, you just have to make a better one than your competition.
Now let’s move to racism. Is it more racist to have an all white company when you’ve hired based on merit, or to have a quota system where you have hired based on skin color. Which one is actually less racist? I can tell you the all-white one fits MLK’s dream more than the quota system.
So the first step is to actually define “better” and then determine how you measure it.
I may have missed it but did Bloomberg disclose in this piece that they also have their own ESG rating system?
exactly.. where are those whyte males reporters?? Looks like Hispanic and Asian and Brits only. Have the shut down NYC office? 😅
Nothing on the payment(profit) for order flow mirage
The ESG ratings fall on their face when you look at Tesla.
ESG - Extra Stinky Garbage!
It will negatively affect profits.
The money to be made on ESG will be as an ESG consultant or ESG Auditor. Also, ESG Officer. This officer will probably be the DEI Officer or in the same department. Another non value added position. Could also make money off the outsourcing that will happen as they try to get rid of their not ESG friendly parts of their business. This is more like bullying corporate America.
Every ESG report I have read pushes DEI.
This has absolutely nothing to do with capitalism, it's about total control of you
😅😅
Can anyone tell me how a ESG score can allow public companies to put on outside ( family friendly events)Drag Queen shows ?
I wonder how many points you get to raise your score.
If one likes that stuff, it should be , behind closed doors.
Some one needs to host a family friendly event. But the show’s are Female and male (real by nature) pole dancers. I wonder how much their score would go up. I welcome any comment’s.
Maybe I'm wrong but, at the end where it says Bloomberg LP has partnered wity MSCI to create an ESG index...isn't that basically saying "ESG isn't actually helping anything but also invest in our ESG fund"?
ESG is doomed to fail..we need a list of companies that are non complying to this mess of ESG so that we can support them like TESLA
Either ditch esg or ditch billions in your market value, corporations. Your choice.
ESG is BS.
What is a better rating system than MSCI?
sooo important. lesson learned curve MSCI
Bloomberg is a rating agency
Also.. who rates ESG firms like MSCI??
Or are we to believe that MCSI "always lives up to" its "ESG standards" 100%?? That there's ZERO hypocrisy or double standards on their part w/ regard to their own corporate behavior and practices??
hmmmmmmmmm
Like... does MCSI *actually put ITSELF within the "esg ratings" on its site*, like we're to "believe" that they "found ourselves to be adhering to the standards"?
What ESG stands for?
Environmental Social Governance
Morgan stAnley yeah ! Gotta buy that stock.
You cannot have Sovereignty & capitalism if your purchases have to accommodate a society across the globe. And you know that the USA would adhere ridiculously, and many countries such as Saudi Arabia & definitely China would not. Also we already see the disastrous results facing Chinese consumers.
Great video! There certainly is a correlation between the individual ratings for a company and it’s Score. But the E - Environmental part is way too small. Interesting video idea would be to look at climate strategies and how „serious“ the companies are actually about it. Most of them seem to make a big hype about it, while only reporting on a few % of their entire emissions
Well, since there is no Climate emergency, and they know it, I guess they don't really care.
Climate alarmists are the most moronic group of people on earth. Suggesting their alarmism should be considered at all is idiotic.
This video is a video from a sham industry about a sham company not enforcing sham policy on the people who pay their bills. This emphasis on carbon is just a way for the top businesses and nations to keep the up and comers from being able to compete with them in a fair and open market.
ESG is their virtue garment. You can’t question a companies mismanagement, the way they might crush a workers movement or exploit cause chaos if they are wearing an ESG garment.
For example when Exon has a better environmental rating than TESLA it is a “lady doth protest too much” situation.
So is ESG the problem, or is greenwashing the problem? Investors should educate themselves on ESG disclosures like they do financial disclosures so they can’t be tricked by fraudulent claims. The SEC is working on rules for mandatory and standardized non-financial reporting, which should help the problem and democratize ESG data.
Mickey D’S: c’mon la Portugal 🇵🇹 Is small country la. Upsize…I mean 😢 upgrade me la
i agree with the report, but the issue with what is the solution. How do we pick the best fund to reduce carbon. i have been trying a true legit fund that slow down climate change.
Great video! Thanks for Bloomberg QT team for revealing the game the MSCI is playing. I am about to start my career as an ESG research analyst soon. This is a lesson I need to learn.
We’ve reached the point where it’s obvious that shareholders matter more than customers. Blackrock, vanguard and state street need breaking up or forced to sell their majority shares.
This is not journalism. The conflict of interest slide should have been at the beginning. Ratings (esg or otherwise) are opinions and are protected by the first amendment. Yes a lot of ESG is BS and should not be the basis of investment decisions. There is a lot of greenwashing, much of the industry is complicit, but no mention of other bad actors. Engaging in ad hominem is disgraceful.
Tesla has a lower ESG rating than ford....
ECONOMIC FACISM!
it's a racket, RICO Case in the future.
Corporation, capitalism, communism, China version 1970s
I call bs
9:10 yeah he means fascism which by definition is gov rule by corpos lol