My avid readers will have observed how I shoot ESG down for that reason alone, as sustainability does not exist anywhere in the universe. Indeed, here again, we see the much-needed reinvention of finance from within concocting a theory incompatible with the principles of nature, portraying to support nature.
This false positive in finance will have dangerous consequences to the expanding fractal of human ingenuity requiring humanity to improve its adaptability to nature’s entropy. In fact, ESG is an accelerant to our anthropogenic cascade caused by ill-formed principles.
Humanity must, for the first time ever, align with the principles of nature (let me tell you what they are) to point the vectors of the arbitrage of finance in the direction of nature’s evolution. Tell me, dear ESG financiers, what are the first-principles of nature to which you claim to contribute?
Do not fret if you do not know the answer, for an intelligent human being is more keenly aware of what and how much he/she doesn’t know. The fools in society are the pretenders, capable of persuading greater-fools with mind-numbing religions of make-believe.
Nobody really cares about ESG, as the Assets Under Management (AUM) report from Morningstar (pictured) demonstrates. The allocation as a percentage of total assets under management is, despite all the hype, insignificant. I hear from reliable sources many investment firms are only participating in ESG not to lose actual asset owners who bought into the make-believe.
Yet, in the confounding of what is good and what is bad for humanity, the infusion of ESG, not unlike cryptocurrencies like Bitcoin, even in its infantile form, will do serious damage to maximizing the expanding fractal of human ingenuity. For a false-positive theory incurs at least twice the opportunity-cost and a loss of time of what a true-positive could discover.
Worse, ESG, beyond its violation of nature’s principles, is a confounding of consequence and cause leading, in the words of Nietzsche, to grave depravity of reason.
We need the best of human reasoning to clean up the solipsistic arbitrage of finance deploying human ingenuity in all the wrong directions. To improve the world we live in, we must begin to adhere to the gameplay nature, without our approval or liking, has already bestowed upon us.