I have argued here that ESG investing has crossed a tipping point where it has become mainstream and is difficult to reverse. But this tipping point has not been universally reached. In the United States, ESG investing is much smaller and growing at a slower pace than in Europe. So where are these tipping points that change an industry?
This is a good article because it helps us see a more general situation. The 25% idea is sound and generally observable. The problem that arises is that the 25% are motivated and impatient. Most have an agenda that deals with some aspect of a bigger situation. ESG, as an example, solves nothing and is immeasurable. It does produce a cost for businesses though. Perhaps clarifying what we want businesses to do would help. They cannot be everything to everyone.
Motivated people tend to want an immediate answer while the more thoughtful tend to be willing to evolve answers. Most of the things that work in our societies tend to have evolved. Certainly, the role of women has changed over the decades.
Motivated answers tend to be too costly while evolved ones use tools and techniques that come available in the future. People tend to always get slow moving problems figured out before catastrophe occurs. Patience is usually wiser and less expensive.
Activists are always impatient because they think urgency drives action. As one client explained decades ago. "I don't need to be first. I need to be the first to right." The first to be right is a patient goal, and it always works for the better.
I think the way to bet today is wokeness will disappear and ESG with it. All that we will have then are steps that are directionally accurate and adjustable. We'll evolve someting that works better. Optimal is a useful goal; perfect is not.
Let's keep Joachim interested in addressing perspective on large problems and their solutions. Share his posts.
This is a good article because it helps us see a more general situation. The 25% idea is sound and generally observable. The problem that arises is that the 25% are motivated and impatient. Most have an agenda that deals with some aspect of a bigger situation. ESG, as an example, solves nothing and is immeasurable. It does produce a cost for businesses though. Perhaps clarifying what we want businesses to do would help. They cannot be everything to everyone.
Motivated people tend to want an immediate answer while the more thoughtful tend to be willing to evolve answers. Most of the things that work in our societies tend to have evolved. Certainly, the role of women has changed over the decades.
Motivated answers tend to be too costly while evolved ones use tools and techniques that come available in the future. People tend to always get slow moving problems figured out before catastrophe occurs. Patience is usually wiser and less expensive.
Activists are always impatient because they think urgency drives action. As one client explained decades ago. "I don't need to be first. I need to be the first to right." The first to be right is a patient goal, and it always works for the better.
I think the way to bet today is wokeness will disappear and ESG with it. All that we will have then are steps that are directionally accurate and adjustable. We'll evolve someting that works better. Optimal is a useful goal; perfect is not.
Let's keep Joachim interested in addressing perspective on large problems and their solutions. Share his posts.