so like with recent news about Target losing 9 billion dollars in a week after having a section for the pride month and the close and transgender and wait a minute what just happened why did they lose nine billion dollars anyway why did Bud Light just lose 28 of sales and it's not even slowing down and all of a sudden they're coming back saying no no no we we love our Drnkers and we're not going to do this dilemma of anything and then ESG comes out and says oh you guys had a perfect score Anheuser-Busch but after the way you handled yourself with Dylan Mulvaney we are lowering your score and they're so scared what happened to CEOs number one customer being the buyer you and I then their employees then the investors today these S P 500 companies why are they so scared of BlackRock why are they so scared of their ESG scores we're going to take a deep dive into that topic in this video all right so if you get value from this video give it a thumbs up and subscribe to the channel let's get right into it what is ESG ESG is a score to measure how well a Company addresses risks with respect to environmental social and governance hence ESG issues in its day-to-day work-in operations these risks include matters like carton emissions employee safety and board diversity the system uses analysts and algorithms to calculate environmental social and governance ratings that are then combined into a score so where did ESG come from in 2006 the United Nations enacted the principles for responsible investment PRI PRI is a set of six principles that outline how investors can integrate environmental social and governance yes she factors into the investment decisions the PRI has been signed by over ready 3 000 investors representing over 40 trillion dollars in assets under management these are the six principles of the PRI number one incorporate ESG issues into our investment analysis and decision making process number two seek to ensure that our investment activities are aligned with our commitments to responsible investment number three disclose our investment policy and procedures in relation to responsible investment number four encourage investment managers to incorporate ESG issues into their decision-making process number five to work with investee companies to promote responsible business practices investee meaning companies that they invested in to investee companies number six promote the PRI within the investment community and with other stakeholders so wait U. N as in like United Nations United Nations yes what what the hell does United Nations has to do with the way bud light or Target or other businesses on s p do business well this is how they have had the choke hold on companies to get them to hit a score so they do what United Nation wants them to do which is what a lot of people in America are worried saying wait a minute why not just worry about America who the hell are those guys to tell us how we live our lives how we run our companies that's what happens when companies global companies some of these companies want more control and even go deeper into how much control United Nations U. N has over these companies so un has powers to influence the flow of capital and sent International laws companies need Capital you have a high score you get Capital you have a low score we're not giving you the capital you want number one legislative powers the U.
N can pass resolutions that impose sanctions on or invest in sustainable development projects control number two judicial power the international court of justice icj can impact the rights of investors and ability of countries to regulate the flow of capital more control number three Financial Powers the UN has influence over the world bank and the international monetary fund which have the power to lend money to countries and to influence the flow of capital more control the UN has several ways to influence these institutions including the U. N general assembly and the security Council can pass resolutions that are binding on the World Bank and the IMF the U. N can appoint the representatives to the boards of World Bank and the IMF the UN can provide funding to World Bank and the IMF the unkn issue reports on studies that can make recommendations to the World Bank and the IMF so the next question would be is there somebody above the UN who is above the U.
N who controls the UN well let's take a look ngos have the most significant influence on the un's decision-making process ngo's non-governmental organizations through Lobby and advocacy and Partnerships ngos have massive influence over the un's agenda they also have played a significant role in mobilizing public opinion on U. N related issues the NGO that encouraged the UN to enact the principles for responsible investment PRI was a United Nations environment program Finance initiative or unep fi is a partnership between the UN environment program and the financial community so having said that some of the largest ngos today include Amnesty International Revenue was roughly 392 Million last year Doctors Without Borders they had a two billion dollar Revenue World Wildlife Fund they have a revenue of 256 257 million Oxfam 119 million dollars save the children 950 million dollars and so now the next question would be so who controls uh the UN ngos now who controls ngos let's take a look Top donors so who are these top donors well governments Netherlands Norway Sweden and Switzerland are the top individual donors into the une PFI so financial institutions such as AXA BMP Deutsche Bank HSBC ing these financial institutions provide funding to une PFI through their membership fees and through their participation in various programs and initiatives foundations such as Ford Foundation Rockefeller foundation and the William and Flora Hewlett Foundation these foundations provide funding through their grants and through their participations in various programs and initiatives you ready for the next one this one's kind of weird ready Bill and Melinda Gates Foundation has donated billions of dollars to various ngos worldwide and partnered with ngos like the World Health Organization UNICEF and many others George Soros open Society Foundation HRC according to open Society Foundation website the organization has given a total of 100 million dollars to HRC over the past 10 years which has been used to support a wide range of organizations work including legal challenges to anti-lgbtq laws public education campaigns about lgbtq issues and lobbying efforts for lgbtq rights legislation but if you're wondering how big open Society Foundation is which showers give 100 million dollars to he's given to them since 1984 32 billion dollars of his own money Source his own money 32 billion dollars has been given to open Society it's a massive ran by George Soros so it's crazy right you think about all these big organizations why do they care so much what these companies do why do why do they fear with this ESG score some why are they doing so many things that makes no sense why would Bud Light Target a transgender audience they don't drink your beer you have military why would you make such dumb decisions because they're worried about pleasing the score here's a story from Bloomberg regarding BlackRock and Larry Fink watch this in 2020 Larry Fink declared that a fundamental reshaping of global capitalism was underway and that his firm would help lead it by making it easier to invest in companies with favorable environmental and social practices our flows continue to grow and dominate things said regarding ESG funds on the same conference call with analysts he added BlackRock is a leader in this this being ESG and we are seeing the flows and I continue to see this big shift in investor portfolios what think did not say is that BlackRock drove a significant part of that shift by inserting its primary ESG fund into popular and influential model portfolios offered to investment advisors who use them with clients across North America the huge flows from such models mean many investors got into an ESG vehicle without necessarily choosing one as a specific investment strategy or even knowing that their money has gone into one in short and a pair on BlackRock LED Rush of investors into ESU in the past two years has been something of self-fulfilling prophecy at least when it comes to the biggest such fund on the planet a BlackRock exchange traded fund that trades under the ticker esgu according to data from BlackRock and Morningstar so do you support ESG you do you watch any sport ESG do you have mutual funds do you have stocks have you to some of these funds you may not know but a portion of your money is supporting ESG and you don't even know it that's what this is kind of talking about by the way let me give you some numbers on how powerful it is and why company CEOs S P 500 CEOs shiver when it comes down to these types of things watch this number one Net Zero asset managers initiative launch in December 2020 with an initial group of 30 signatories by the end of 2022 it had 291 representing over 66 trillion dollars of assets under management it's a lot of money 66 trillion dollars according to Larry Fink's 2023 CEO letter today's Global Financial assets total is 400 trillion it's a 66 trillion that's a lot of influence according to Boston Consulting Group asset managers control roughly 60 percent of global investable assets this is why companies are afraid of going against ESG asset managers control investment flows there is no other way to say it but why is CEO of a company that knows who 99 of us customers are wants to Pander to this because behind closed doors that guy is scared I'm not getting a good score here how weird right three companies I want you to know about BlackRock State Street and Vanguard these three companies the amount of power they have with ESG it's wild here's an article from Harvard Business Review look what it says here one of either BlackRock Vanguard or State Street is the largest shareholder in 88 of the S P 500 companies let me say this one more time in case I said it too fast one of three State Street Vanguard BlackRock is the largest shareholder in 88 of s p 500 companies did you catch that that's a lot of control and influence they are the three largest owners of the most Dow 30 companies overall institutional investors which may offer both active and passive funds on 80 percent of all stocks and S P 500 companies The Big Three collectively held a median stake of 21. 9 percent in S P 500 companies which represented a proportion of 24.
9 percent of the votes casted at annual meetings of those companies that would make sense it's not these poor CEOs that were bashing and trashing they didn't do anything they're just reporting to their boss who owns 24. 9 of the votes they get to impact their weight and got imagine who's sitting in this board right and they're like well here's what we're thinking about we're thinking about making something to Target to get more families to come by and make a drink for veterans because we kind of want to do this no we're gonna do this and if you guys go against this we can't fund your this oh what do you think I'm kind of going with these guys I still want my job what do you think you were with me when we talked yesterday at dinner and you said it was a good idea I don't know what dinner you're talking about I'm gonna go why he doesn't want to get fired you don't think these types of things happen being closed doors what do you think what do you think when you have this kind of control what do you think happens you have to be naive to think it doesn't happen these three firms control roughly 80 percent out of about four trillion dollars in total ETA assets so if they sold you and you're watching this you're like yeah but Pat the whole thing but yes she is environmental aren't they trying to make the environment the whole purpose is to make the world a better place so the planet's going to be around longer no isn't that what it's about well maybe that's what they say but let's see if that's what they do in December of 2021 Bloomberg found that only one of 155 ESG upgrades of s p 500 companies cited an actual cut in emissions as a factor oh my God one in 155 but listen ESG what we're doing is environmental social and governance we're trying to make the world a better place so you can last longer and live longer in your kids and the planet and all this stuff oh really yeah show it to me what action one out of 155. yeah you're full of I don't believe you that's kind of how the average person after they look at the numbers are going to say I have a hard time believing these guys are doing it for a good cause Okay so so as if this ESU stuff wasn't enough have you guys heard about Dei or CI maybe you've heard about you don't know a lot about it let's too many acronyms I'm with you but let's let's take a look at this as well so Dei and CI take over Corporate America according to justcapital.
com as of 2023 94 of employers and 74 percent of workers say that their organization has made a commitment to advancing Dei in their workplace compared to 2021 only 32 percent of companies required some form of VI training for their employees you determine 94 of employers and just two years ago was 32 percent of companies require some sort of di training this thing's becoming a phenomenon right now it's cool to say we have a Dei and a CI training I think we even thought for like six years ago or five years ago at first thinking this was a good cause Okay so Dei and CI Takeover in Corporate America there's a few things we need to know about first before I give you the stats here which is absolutely wild okay so di stands for diversity equity and inclusion refers to organizational Frameworks which seek to promote the fair treatment and full participation of all people particularly groups who have historically been under underrepresented or subject to discrimination on the basis of identity or disability so sounds like a noble cause right now let's look at CEI CI stands for corporate equality index which is the national benchmarking tool on corporate policies practices and benefits pertinent to lesbian gay bisexual transgender and queer employees which is kind of wild now because now with the CI score if let's just say I'm a 22 year old kid just got out of college I'm working for S P 500 company 379 are participating in the CI score 138 is their first year ever what do you think they're doing to employees like you and I for working there what do I have to buy it for what language do I have to use what can't I use now here's what's a little wild when you think about social media sites for business there's only one of them you think about you think about LinkedIn right even LinkedIn wrote an article about how this Dei could be a bad thing for business here's what it has to say seven ways your di initiatives are harming your company and how to resolve it number one Dei is discriminatory I can imagine it is discriminatory it's linked in saying this number two Dei unnecessarily preferences physical attributes over the non-physical number three Dei diminishes the size of the talent pool number four di decreases performance number five di is divisive number six di diminishes accomplishments and disincentivizes performance number seven Dei is distracting says LinkedIn LinkedIn article four ways to resolve it number one close the DI office altogether number two eliminate diversity quotas number three hire promote on Merit number four seize all diversity training programs and reinvest that time and money to upskill employees what a crazy little wild little dark little no common sense it just doesn't make any sense what these guys are doing here by the way do you know what the top five best ESG score companies are number five drum roll Bank of America I am surprised number four Salesforce number three Microsoft Bill and Melinda Gates anyone's surprise I'm not surprised number two Intel and number one highest ESG score is a company many say that supports the government as a company called alphabet hence Google has a high CSG score do you want to take a while guess which companies have the lowest CSU score these are anti-establishment companies you think Tesla has a high ESG score can you imagine Tesla does more to actually help with emissions but to have a medium score they're not impressive they're right in the middle out of all the automobile companies out of 81 automobile companies they're Rank 41. and they're doing more than all these other guys Twitter not the best score Fox Nation Fox News not the best score Xerox not the best score at T not the best score these are at the bottom I wonder why because they're not caving into these ridiculous policies that these guys are coming up with that cost Target 9 billion the that cost but Anheuser-Busch 15. 7 billion dollars I tweeted this the other day and I'll explain three points I talked about about why this doesn't work Lesson Four Fortune 500 company CEOs and CMOS number one screw your ESG score instead focus on keeping your best customers happy number two you can't please both the ESG community and your best customers at the same time attempting to do so will cost you both number three it's time for the board to fire the seal on the entire marketing team you know what the problem with that is the board will gladly fire them because they're ESG people because they own 24.
9 percent of board seats in the first place makes sense this is kind of weird to say fire them and don't fire them they're probably not going to fire these guys because they're doing exactly what they want them to do but in an ideal situation of capitalism not controlled by some U.
