ESG

There are many companies whose job is to maximize the return in 401K retirement plans. A new idea being pushed by those with climate concerns is called Environmental, Social and Governance (ESG) and could threaten the return on investments in these 401K plans. ESG tells investment managers what companies they should invest in based on that companies treatment of climate change. For example, investing in fossil fuel companies would be discouraged. The law proposed to accomplish this was changed to remove the requirement that people be told if their investment manager is subject to this new rule. This will allow the government to get involved in your personal finances. Many large money managers have already stopped investing in fossil fuels making it more difficult for oil companies to get financing for new drilling. This is just one more way where the government is attacking the fossil fuel industry. This is all based on the dubious proposition that wind and solar can replace fossil fuels. To solve the problem of climate change requires the use of all kinds of energy sources while making the transition to a carbon free economy.