Paul Tice’s op-ed “ESG Threat Goes Beyond BlackRock” (September 28th 2022) demonstrates a flawed understanding of Environmental, Social and Governance investing and mischaracterizes the mission of my organization, the Principles for Responsible Investment (PRI).
The widespread embrace of ESG investing isn’t the result of a hidden hand pulling the strings of the financial market. Investors increasingly recognize that ESG factors are material to their investments and that climate change exposes companies to risk. They know consumers increasingly favor sustainable products and businesses, and that the alternative to a sustainable global financial system is an unsustainable one. ESG investing is a means to an end: sustainable returns.
PRI’s mission is in its name: we advocate for six principles for responsible investment. We’re transparent about our aims and ambitions. We promote sustainable investing practices, which means enabling investors to make their own informed decisions.
We want investors to have access to the data they need to make choices about where to direct capital. By contrast, trying to prevent investors from accessing information and limiting the ways in which they can practice sustainable investing does exactly what Mr. Tice accuses ESG’s proponents of doing—it undermines investors’ ability to make their own decisions.
Principles for Responsible Investment