ESG is touted as the righteous investment strategy shaped by environmental, social, and governance goals hinging on the precept of sustainability.
False Positive
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 for the expanding fractal of human ingenuity, requiring humanity to improve its adaptability to nature’s entropy. ESG is an accelerant to our anthropogenic cascade caused by ill-formed principles.
First-Principles
Humanity must, for the first time, 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 they don’t know. The fools in society are the pretenders, capable of persuading greater-fools with mind-numbing religions of make-believe.
Nobody Cares
Nobody cares about ESG, as the Assets Under Management (AUM) report from Morningstar (pictured) demonstrates. Despite all the hype, the allocation as a percentage of total assets under management is 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 bad for humanity, the infusion of ESG, not unlike cryptocurrencies like Bitcoin, even in its infantile form, will severely damage maximizing the expanding fractal of human ingenuity. 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 consequence and cause leading, in the words of Nietzsche, to grave depravity of reason.
Nature Rules
We need the best human reasoning to clean up the solipsistic arbitrage of finance, deploying human ingenuity in all the wrong directions. To improve our world, we must adhere to the gameplay nature, without our approval or liking, that has already been bestowed upon us.
