The world’s richest person and top entrepreneur, Elon Musk, is describing ESG, or the Environment, Social, and Governance movement, as the “Devil.”
In a Tweet that included a statement by S&P Global that cigarette firm Philip Morris International topped Tesla in its ESG “score,” Musk slammed the new social battle.
Why ESG is the devil … https://t.co/uGrH0eBoMs
— Elon Musk (@elonmusk) June 14, 2023
It appears that smoking Cowboy Killers, or Marlboro cigarettes, is better for the environment and the world in general than driving an electric car.
ESG is the new shiny in the world of big government, and one the current US government is pursuing with vigor. At this moment, the US Securities and Exchange Commission is crafting rules that will require public companies to disclose their “impact” on the environment – an almost impossible task. The new Climate Disclosure regime will compel reporting companies to provide documentation on all things energy and material, including its upstream providers, meaning private firms will get hoovered into the process. Ultimately, the cost to both public and private firms is incalculable. What is guaranteed to happen is there will be a new industry of Greenwashing firms promising companies they can provide a clean bill of health that will validate their ESG cred. Of course, this will come with a cost too.
While industry has made huge strides in pursuing operations that mitigate and reduce the overall impact, some believe ESG regimes will drive things in the wrong direction.
At the same time, the unknown cost to public firms will certainly push companies away from becoming public. Perhaps this is what the SEC wants to accomplish as it will make their jobs easier.
