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With the emergence of a new generation of investors, publicly traded corporations can no longer afford to focus on expansion and profitability. Other young people are involved in sustainability and selling positive adjustments with their capital. As a result, in recent years we have noticed the popularity of ASG investment or organizations announcing constructive environmental, social and governance outcomes.
At InvestorPlace, we have covered many corporations that fall within the DEFINITION of ESG investment. However, it is also useful for movements at the opposite end of the spectrum. When most people think of GSS, they promptly target oil corporations. , some industries do not respect the “E” component of this acronym. But even then, some actors in the industry announce amazing practices.
More importantly, the “violations” of ESG investment do not come from the same old suspects. For example, boring corporations may announce less than desirable governance. How? Reimbursement to executives is a transparent example: if a company’s large wigs make a lot of cash, but the rest of the staff ends up with very little, it can damage morale and, in turn, this can have a negative effect on stakeholder performance. .
Of course, some corporations have to convince that responsibility is smart for the bottom line. Here are seven corporations that don’t make a difference when it comes to ESG investment:
As you know, electric cars have recently soared into the mainstream, providing compelling inventories to buy. However, opting for winners beyond Tesla (NASDAQ: TSLA) is a complicated test. In the past, I encouraged readers to the concept of lithium. mining corporations such as Sociedad Química y Minera de Chile. Covering the only asset that all VE brands need, SQM inventory turns out to be a forged bet.
Let’s start with the mundane. In recent years, Sociedad has sometimes talked about its accounting practices, which fall within the realm of governance, but more damaging from the point of view of public relations is that lithium mining (or any other type of mining for that matter) is not exactly ecological. For example, the growing demand, which has a higher inventory of SQM, has forced the underlying company to compete aggressively for scarce water resources.
Unfortunately, this festival puts the MSSR at odds with Aboriginal communities, which is a non-massive from a social point of view. Moreover, this support goes against governance due to potentially unethical business practices.
Finally, SQM’s action is the antithesis of ESG’s investment because it benefits at least from rabid Western consumerism. However, Aboriginal communities suffer, perhaps the time has come to reconsider the total ecological concept with electric vehicles?
To be honest, mining is a mining operation that will not have a higher environmental score; However, if you need to feel a little smart about yourself, you can do so with Kinross Gold (NYSE: KGC), which prioritizes corporate social responsibility. .
If you need to know what the antithesis is for ESG to make an investment, simply log in to Fox News. One of Fox Corporation’s flagship assets, Fox News, has been the subject of controversy when a report revealed that watching only the conservative news channel makes it less informed than seeing nothing at all.
At the time, I didn’t understand. After searching his politics for the new coronavirus pandemic, I nevertheless understood it. Essentially, Fox News is President Donald Trump’s spokesman. The only challenge is that I don’t even think Trump knows what he’s going to say next, which leads to bad comedian shots.
For example, the view of Greg Gutfeld, co-amphitrion of The Five, that Trump is intentionally minimizing the coronavirus pandemic, inexplicably, Gutfeld compares it to a doctor who does not scare a patient when he sees a stain on the patient’s x-ray. Well, doctors also have a duty to inform the patient of what’s going on, not just to leave him alone.
Recently, Tucker Carlson caused controversy by welcoming Dr. Li-Meng Yan to his program, which states that China has manufactured the new coronavirus in a laboratory; however, his claims have been widely discredited through classic peer reviews. Besides, Fox News continues, to check to introduce the doctor, yet brings new evidence to the table.
It’s almost as if Fox were looking to start a race war in America, causing the ignorant and naive to stigmatize an already marginalized minority group. This is brazenly irresponsible in each and every sense, making FOXA’s inventory a massive violator of ESG investment principles.
As you know, communities of color have long struggled to be represented in the media and entertainment. A few years ago, the hashtag #OscarsSoWhite come to life, denouncing the lack of diversity in Hollywood. In response, some corporations responded by presenting blacker, artists. While it’s a big step in the right direction, communities of color come with more than one demographic.
For example, Asian Americans are the fastest developing population in the United States, their representation in the media appears to have declined. Well, his eyes don’t idiotize him if he sees NBC property through Comcast. According to a 2019 report through the Asian Pacific American Media Coalition, NBC submitted “only 12 recurring portions [for Asian-American actors], compared to 26”
Now make no mistake, because the overall narrative of CMCSA’s action will not be affected by this circumstance. However, if ESG investment, Comcast collapses on the social side. Another example is NBC’s Today Morning, expelling journalist Ann Curry for Matt. Lauer’s shame. This action also speaks very badly of governance, specifically of gender equality.
For a larger media company in the ESG plan, you might need to see Disney (NYSE: DIS). Obviously, Disney has its warts. However, Magic Kingdom scores high in terms of holistic diversity, which is a big challenge in those days.
One of the mistakes other people may make in making an ESG investment is that they assume that corporations that do not generate outlandish controversies are bets, however, nothing can be an extra of the truth.
Organizations that are not on the cover would probably be more guilty of mischief because the highlight is far from them, and Xerox gives us a smart example of this dynamic.
On the surface, you wouldn’t expect XRX inventory to make negative lists. Of course, business can be boring and irrelevant. And without the dividend, XRX would be incredibly frustrating to own. But some signs recommend that this corporate generation may simply be in a much better position if it deployed greater governance and social awareness.
I think it’s also revealing that only 43% of Xerox workers propose a friend who works there. Unfortunately, it turns out that the iconic company does not respect its protocols of governance and social conscience. For a company to shine, it wants to do so. Give flavor to the morale of the workers. Otherwise, you’ll only pour out talent.
For a generation company that gets the highest score on workers’ concerns, see Microsoft (NASDAQ: MSFT). Coincidentally, Microsoft has recovered from its difficult era several years ago to become one of the most resilient and applicable entities.
As you know, between the United States and China they are barely increasing. In early August, Trump issued an executive order to address the risk posed by WeChat, Tencent’s messaging, social media and electronic payment app. According to Trump’s executive order:
“Like TikTok, WeChat automatically captures large data extensions from its users. This collection of knowledge threatens to allow the Chinese Communist Party to obtain non-public and exclusive data from Americans. In addition, the app captures non-public and exclusive data from Chinese citizens visiting the United States, allowing the Chinese Communist Party to have a mechanism to monitor Chinese citizens who can enjoy the benefits of a relaxed society for the first time in their lives.
Despite the resentment of our policy, it’s really something that can help Trump’s re-election possibilities. According to the Pew Research Center, most Americans have strong criticism of the importance of privacy. Depending on the long term it has an effect on this unfortunate situation, the decree can pose serious disruptions for the population of TCEHY.
From a social media perspective, it is difficult to find a smart alternative, but from a payment processing perspective, you may need to consult PayPal (NASDAQ: PYPL). The platform enjoys great trust among its consumers, which turns out to be the antithesis of tcEHY’s action.
As I mentioned earlier, mining is an unpleasant business if you are interested in ESG investment. In any case, it uses heavy appliances to exploit the earth’s herbal resources. So, until we start extracting asteroids, it’s going to be a very problematic industry.
However, there are bad actors, and then there’s Nornickel. Formerly known as Norilsk Nickel by the Russian city to which it provides maximum jobs, a call replacement will do nothing to its reputation as one of the worst violators of the ESG investment. , successes keep coming.
In a high-profile incident, the Daldykan River in the commercial city turned red blood. Nornickel, in the first place, denied any involvement. However, the Guardian reported that the corporate admitted that “heavy rains had caused flooding of a leak dam into the river. The incident warned that, despite norilsk Nickel’s efforts, environmental considerations are far from resolved in what was long called Russia’s most polluted city. “
However, as an ESG investment platform, NILSY’s inventory is a disaster. Unfortunately, it has a long history of contamination as well as negative effects on the suitability of Russians. On all fronts, it’s a crooked acronym. However, it has great uptrend potential, especially in this environment, which helps keep inventors in the game.
If Trump wins a one-minute term, the GEO Group would possibly see its market price rise. This right tells you everything you want to know about your ESG investment credibility.
We’re slavery. Now it’s evidence-based rehabilitation, it’s grade A nonsense.
If you want me to explain why GEO action ranks poorly among ESG investment candidates, you can simply stay with Fox News. It’s the kind of red tablet that can end up with your brain. More importantly, I don’t want to be responsible.
Certainly, some others would possibly argue that inmates in personal prisons acquire professional skills. From there, the transition to a relaxed society will be easier. However, many other people have a massive ethical challenge to take advantage of each other’s mistakes. Yes, prisoners pay their debt to society, but that doesn’t mean they pay you directly.
In addition, the discussion of social equity that we have made today made GEO’s inventory a totally deaf investment, which from ESG’s point of view will have to be regarded as one of the worst of the worst and not, there are no major alternatives. This industry is inherently toxic.
Josh Enomoto, a former senior business analyst at Sony Electronics, helped negotiate primary contracts with Fortune Global 500 companies. Over several years, it has provided unique and critical data for investment markets as well as other sectors, adding laws, structure control and health.
Publishing 7 hot actions that cause the most ESG damage gave the first impression on InvestorPlace.