A BlackRock director argues that energy abundance, not ESG divestment, is the key to creating a truly sustainable world.
The Limits of ESG Investing
This isn’t about realism but optimization. Let me be clear: we all want a fair world, and none of us want to destroy nature and the Earth. Fundamentally, I support the ideas behind sustainable development.
While writing a book from the perspective of a BlackRock director, I realized that the entire structure and paradigm behind ESG investing—investing in environmental, social, and corporate governance issues—don’t yield better environmental or social results or higher returns.
Real Solutions for a Sustainable Future
Withdrawing capital from industries like oil extraction won’t clean the air. You can certainly get rid of dirty assets to create a green portfolio, but that won’t make our world clean.
A green world can only be created through real, well-designed investments.
