The CEO of our country’s largest pension fund, $500 Billion CalPERS, reiterates her support for ESG by stating the battle over ESG is over a lack of a common definition. That is like saying the validity of religion is based on a misunderstanding of who God is.
Religion is the sleep of reason that lulls people to sleep with the belief they no longer need to think for themselves and leave their life to faith or hope. Likewise, ESG is the mistaken belief in sustainability where none exists.
ESG is the god-awful acronym for investing in the environment, social, and governance to regain the public’s trust through “modern” finance as a source of good in the world. The bad part is that financiers know nothing about the principle of entropy, the decline of available energy, completely invalidating the existence of sustainability upon which ESG and other new finance programs are built.
Never mind the vector of sustainability being incompatible with the theory of general relativity, Einstein, with great proof, attempted to convey to commoners no less than one hundred years ago. The reinvention of the morals of finance remains firmly lodged in the denial of the discoveries of nature to which we are ultimately accountable to produce renewable returns on investment.
So, here we go again, the largest pension fund in America invests using programs incompatible with the evolutionary principles upon which the future and longevity of humanity depend. What could possibly go wrong?
Note: In full disclosure, I have been contacted by a CalPERS board member roughly three years before writing this article, with Marcie Frost in charge of running CalPERS as CEO. I then made the board member aware of how the vector of sustainability is incompatible with the vector of renewal dictated by nature.