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Dec 20, 2023·edited Dec 20, 2023Liked by Peter Halligan

The ESG concept rests on some insights that are valid, assuming they are done right.

Where it goes wrong if arbitrary proxies are used in the categories that make it political not factual, and therefore serve political agendas, to which the anti-trust concept may indeed be applicable.

E for environmental is very difficult to define in a reasonable way, even if it might be desirable, but CO2 is a bad proxy for what the real problem is, which is simply pollution. CO2 is plant food, not pollution.

S for social, is equally important - we should want companies that are responsible citizens that contribute to the community, but again this cannot go by political proxies for the real thing.

Governance, there has been a lot of research into management structures that produce better, faster, leaner and more efficient companies. But again, instead of honest research into a notoriously difficult to prove concept, arbitrary and highly politicized proxies are being used that amount to conformity to a norm, which is probably a direct enemy of performance.

In short, the whole thing is excrable.

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Well said!

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