ESG Investing, FedNow, Fedcoin
What is ESG investing? Put simply, it’s “socially responsible investing”. There are money managers who invest in companies that are deemed “socially responsible” and which do not harm the social environment. But ESG is more than not investing in companies you don’t want to support; it has morphed into more of a political investing environment which is being used to push the leftist agenda.
ESG = Environmental Social Governance
Environmental – what kind of footprint does the company have, does it use toxic chemicals, does it make any sustainability efforts, does it promote green energy
Social – what is the company’s impact internally and within the community (racial equality and diversity, LGBTQ agenda)
Governance – how does the company’s management drive positive change
Turning to ESG investments not because they’re better, but because they support a certain policital agenda can hurt the financial return of individual investors. Certain states such as California are even starting to mandate that money managers invest in ESG companies. But the purpose of investing is not to further a certain agenda, so are these money managers violating their fiduciary responsibility?
FedNow = a new payment processing system
Fedcoin = a Central Bank-issued digital currency – the United States dollar in an electronic format, backed by the US Government
Listen in to find out more.