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Culture War Roundup for the week of November 25, 2024

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When companies like BlackRock were pushing ESG hard, ESG money was cheap money.

Why were companies like BlackRock pushing ESG hard?

Larry Fink simply believes in it, and it's not his money he's wasting.

Larry Fink has no major politics beyond being a mainstream Democrat, at most he’s a centrist neolib. He strongly resisted almost all activist demands for Blackrock to divest from arms companies and fossil fuels firms. Blackrock isn’t primarily or even substantially responsible for DEI in corporate America and its influence on firm culture at board level is minimal. Fink is likely in the 65th percentile, no more, on the right-left scale among Americans. ESG was always a fake movement and the amount of money invested in ESG-focused funds, while high in nominal terms, was tiny compared to aum in the global asset management industry. What little was done was often under pressure from big institutional investors who do care, mainly universities and progressive pension plans (like teachers and academics), along with some progressive sovereign funds like the Norwegians. Blackrock promoted ESG under pressure from these institutional clients, not because of Fink’s own politics.

"...resisted almost all activist demands for Blackrock to divest from arms companies and fossil fuels firms..." Which has nothing whatsoever to do with pushing Woke.

"...money invested in ESG-focused funds..." This is just hilariously missing the point. Blackrock doesn't just "invest" - it provides day-to-day funding for businesses. You don't get access to those funds if you don't meet Larry Fink's requirements on diversity, which is why I had to sit through interminable videos of my CEO (and other bigwigs) verbally fellating Fink's (Fink is praised by name) diversity initiatives and how vitally important they are, never mind the obvious negative impacts it has had to our company's performance.