ESG & SRI vs VBI
ESG, SRI & VBI - Impact Your Money!
ESG, perhaps better than any topic in view, best exemplifies the issue of Shareholder VOICE. If you own stocks, you as an owner of those companies have a VOICE. If you do not choose to voice it, by VOTING, it will be done for you by the Investment Companies in which your stock ownership resides.
Some of those Investment Companies are receiving push back from a perception that they influence those corporations through exercise of influence on their company Boards. Numerous states' Attorneys General have recently concluded actions taken by various Investment Companies are perhaps not in the best interest of shareholders relative to how the Investment Companies are voting them, and have put restrictions on working with these Companies with state funds. So Share Voting is obviously an issue worth understanding. Other Investment Companies are actively trying to remove any undue influence, suggesting that steers large corporations from their core focuses into unprofitable ventures to the detriment of their shareholders ... perhaps YOU.
Whether you are pro-ESG in its present format, or subscribe to the latter view there is undue influence perhaps working against you, it is a good topic to understand as an investor. In the sections below, hear the issue described by various leaders of the industry from various sides!
Neutralizing Corporate Governance
Corporate Governance Overview
Justin Danhof of Strive explains the duty Corporations have to its Shareholders and the importance of keeping politics out of Boardrooms. Premise: Corporations should focus on core competencies and shareholder profits, not political agendas.
Vanguard ‘Pushes’ Stewardship
Vanguard’s Glenn Booraem: “Vanguard engaged 950 odd times last year with companies, ‘escalating engagement’ with voting (proxy-voting Shareholders’ shares) over time”. Hear him describe the process.