Under perfect working capitalism, consumers decide what should be produced and how. Investors should select the most profitable producers based on this demand from consumers. ESG investing is absurd.
The basic assumptions underlying your statement are that (i) consumers know what they want to consume and are perfectly rational in weighing short-term vs. long-term costs and benefits as well as externalities on top of price, and (ii) that producers optimise for shareholders only and that shareholder value maximisation is long-term efficient.
Under perfect working capitalism, consumers decide what should be produced and how. Investors should select the most profitable producers based on this demand from consumers. ESG investing is absurd.
The basic assumptions underlying your statement are that (i) consumers know what they want to consume and are perfectly rational in weighing short-term vs. long-term costs and benefits as well as externalities on top of price, and (ii) that producers optimise for shareholders only and that shareholder value maximisation is long-term efficient.
I have serious doubts about both assumptions.