Environmental, Social, and Governance Legislation

New ESG Legislation and Requirements

New ESG Legislation and Requirements ESG (Environmental, Social, and Governance) is a World Economic Forum driven theme and agenda.  For those of you who are unaware of the World Economic Forum, it is the organization driving current agendas; e.g., build back better.  “You will own nothing and be happy about it.” is the slogan used by the Word Economic Forum and their main agenda is a new world order.

One only has to listen to different politicians around the world to understand that the World Economic Forum has penetrated governments world-wide.  Klaus Schwab was bragging in a video found on a Rumble podcast about this very thing.  So one would rightly be concerned when facing any sort of agenda supported and driven by the World Economic Forum.

The EGS is not that new.  Last year, while mainstream media was cultivating panic through the pandemic, regulations were being introduced to support the EGS agenda.  It is unlikely EGS will pass any sort of legislation; however, as we have seen with the current administration, work-arounds are typically utilized by abusing bureaucratic offices.  In this particular case, EGS will be driven by the SEC (Securities and Exchange Commission).

The function of the SEC is to “oversee securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud”.  
According to an article published in March of 2021 on the SEC site, these new regulations are not mandatory; however, businesses will be required to explain why they have not implemented them.  A rose by any other name…

So what are these ESG regulations?  According to the ESGToday Website, “require U.S. companies to provide information on climate risks facing their businesses, and plans to address those risks, along with metrics detailing the companies’ climate footprint including Scope 1, 2 and in some cases Scope 3 greenhouse gas (GHG) emissions”.  That sounds responsible doesn’t it?

What the SEC and ESGToday fail to inform the public, is that these reports will be placed into a database and a “third party” will provide a rank for each company.  What does this mean?  It means investors and the public do not have actual documentation provided by the organizations to the third party that was used to assign their ranking.  There is no transparency.  Further, the criteria for ranking is not publicized, which leaves one questioning, “who will audit the third party for accuracy and fairness”?  Larger companies will continue to grow and profit, while smaller companies that are unable to assign the resources to the mitigation of negative ESG effects, will ultimately fail.

Further, according to a publication by Forbes in September of 2021, “a 2020 study from the Center for Retirement Research at Boston College found that “the evidence suggests…that social investing: 1) yields lower returns; and 2) is not effective at achieving social goals.”

Given the position of the World Economic Forum, it would be a small and easy step, to ensure the failure of specific business and organizations while ensuring the success of others in order to achieve whatever nefarious agenda it deems relevant to their current goals.