ESG’s Investing Is a Key Factor in “Greenflation”

“ESG-driven inflation is pushing higher prices on hardworking American consumers and forcing taxpayers to pay the bill for the progressive agenda of megalomaniacs like BlackRock CEO Larry Fink,” Will Hild, the executive director of Consumers’ Research, told Breitbart News in a statement. “With supply chains still being disrupted and prioritization of liberal political goals forcing higher prices at the grocery store and the gas pump, it’s clear ESG is a major factor.”

Larry Fink, Chairman and Chief Executive Officer of BlackRock, spoke at an event that took place on the sidelines to the opening day for the World Economic Forum (WEF), in Davos, Switzerland on Tuesday, January 17, 2023. (Hollie Adams/Bloomberg via Getty Images)

ESG investing, the latest tool used by leftist Wall Street companies to pressure corporations into taking social and politically oriented positions. This includes divesting from oil and natural resources, increasing diversity requirements, and other leftist goals.

Now that the economy is thriving, trend In the face of recession, executives in business have stated that they will abandon ESG practices. KPMG surveys found that 59% of CEOs have abandoned ESG practices. said In October, they will either “pause” Oder “reconsider” Their ESG plans for the next six-months

David Henderson, a research fellow with the Hoover Institution and Marc Joffe (a senior policy analyst at the Reason Foundation), are among the guests. explained The Wall Street Journal How ESG priorities could lead to inflation

ESG investing and the management methods it encourages can increase production costs and limit capacity. A company that diverts resources to a formal diversity equity and inclusion program with all its attendant human-resources hires and bureaucracy will have fewer resources available for product research and development. If a company with a core competency in oil and gas production decides to shift into wind and solar, even though it has limited expertise, its output will suffer. In general, an investment framework that de-emphasizes production in favor of social objectives will divert money away from efficient producers—in the same way taxes will.

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Companies that focus too much on ESG priorities run the risk of higher inflation, slower growth, or stagflation.

“As more financial leaders scrutinize so-called sustainable investing, there’s ample evidence suggesting ESG exacerbated the 9.1% increase in the consumer price index.” via @RealClearEnergy https://t.co/DfsiwB1k0n

— RealClearPolitics (@RealClearNews) August 1, 2022

Joffe and Henderson continued. “To get the U.S. economy back on a path to sustainable growth and low inflation, the Fed must rein in excess liquidity, as it is now doing. But that alone won’t be enough. Businesses, investors and those advising them must push back on ideas such as ESG that undermine corporate productivity.”

Principal Global’s chief global strategist, Seema Shah labeled ESG’s push away from fossil fuels “greenflation.” Shah stated that the push for net-zero climate changes policies is a must. “created a chain reaction resulting in higher energy prices and, ultimately, higher consumer costs.”

Gabriella Hoffman, a senior fellow at the Independent Women’s Forum, wrote, “Instead of playing politics, corporations should revert back to their original mission of creating value in business. If they truly care about starving inflation and not passing costs down to consumers, they must immediately reassess stakeholder capitalism and reverse course.”

Even though Americans are more aware of the dangers associated with ESG investing, John Carney, Breitbart News Economics Editor, has stated that the battle against ESG is over.

Carney explained The need for domestic production has been exposed by the conflict between Russia and Ukraine.

Even though Joe Biden claimed otherwise, the Democrats deny being at war with fossil fuels. promised To “end fossil fuels” During the campaign, his first actions as President of America included anti-fossilfuel policies like the cancellation The Keystone pipeline embracing The Paris Climate Accord. Putin’s invasion of Russia was the shock that finally dispelled the illusion of a free and easy transition away from fossil fuels. This forced Biden spend much of last yea begging Saudi Arabia for more oil chastising American drillers are not allowed to drill more.

“The year 2022 was when Americans starting pushing back in earnest against the toxic combination of finance and left-wing politics that claims for itself the mantle of environmental stewardship and good corporate governance. As Gore’s words from Davos and the Reclaim Finance report demonstrate, the struggle is far from over,” Carney made the announcement in the Breitbart News Digest.

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