Jim Jordan recently went head to head with Climate 100+, a group of self-proclaimed experts that attempted to control the operations of over 40 energy companies in the United States.
The ESG movement is not only a hoax that is not fully concerned with its environmental impact, but it is also a dangerous movement that is attempting to disrupt key industries in the US economy. While it is positive to note that many companies have been backing away from ESG, it is still crucial for politicians to monitor this threat and push back, as ESG advocates still have their eyes on key industries like the energy, aviation, and automotive industries.
ESG Narrative Collapsing
Many previous proponents of the ESG movement have decided to change course, as politicians and other groups have exposed the flawed model of ESG. Jim Jordan recently questioned members of Climate 100+ about some of their initiatives to limit oil production in the United States.
Climate 100+ Can’t Answer a Simple Question
During a House Judiciary meeting, Jim Jordan began by asking whether energy companies should reduce production to reduce emissions. While this seems like a very simple and straightforward question, multiple members could not answer it.
One member stated that he didn’t think that anyone knew how the climate change transition would take place. Another member went off on a tangent about how the oil and gas industry was facing headwinds.
This Climate Cartel, called Climate 100+, has been targeting 42 major energy companies and persuading them to reduce their emissions. This group has been pressuring companies like Chevron by questioning whether they were embarrassed that they were an American company and their production was increasing. However, this group was unwilling to answer simple questions and could not demonstrate why they should have the authority to control the American energy industry.
Politicians like Jim Jordan have heavily criticized this movement for years, finally leading many large players to pivot. Jim Jordan mentioned how many large names, such as Blackrock, JP Morgan, Vanguard, and Pimco, all recently decided to leave Climate 100+ around the same time.
Individual Freedoms Targeted
Jim Jordan also questioned the members about other important ESG policies that could negatively impact the lives of middle-class Americans.
Jim Jordan asked Ms. Lubber whether we should end the internal combustion engine in 10 years.
Her response was as follows:
“ That is the direction that our government is going, and I think that is the direction that the automotive makers have determined makes sense.”
Electric vehicles remain unaffordable for Americans, even after all the incentives the Biden Administration offered to help make them more affordable. Ms. Lubber also appears to be out of the loop, as electric vehicle sales from major US car companies have declined substantially this year. Despite the cult-like push for mass adoption of electric vehicles, it does not make sense for the producer and consumer for EVs to overtake traditional vehicles.
Jim Jordan also asked about air travel and specifically whether we should aim to reduce air travel by 12%. The European Union has already pushed for higher fares to help limit travel and reduce emissions, and similar changes could spread in the United States. Previous politicians even tried to prevent people from flying if they did not receive the Covid vaccine, so anything could be on the table in the future.
The ESG cult movement advocates many measures that restrict individual freedoms. These measures do not have a meaningful environmental impact and go against natural market cycles. Aviation and automotive companies should focus on producing the most relevant and affordable products for consumers and should not be burdened by ESG concerns.
Pushing Back Against ESG Hypocrisy
Luckily, politicians, universities, and other groups have been pushing back against the toxic and hypocritical ideologies of ESG.
Texas schools recently decided to pull funds from Blackrock after it accused the fund of boycotting energy investments. Texas is one of many republican run states that has not viewed Blackrock’s actions as favorable, as some of these states heavily rely on energy to support their economy.
Many corporate investors in the United States followed Blackrock’s lead in 2020 and decided to avoid energy investments. ESG came under heavy criticism since it targeted US energy companies. Moreover, this industry has many greenwashing issues, as companies may overstate their environmental impact to attract investments or customers.
Investors have also been pulling funds from ESG funds as performance has lagged. At the end of the day, investing should be about earnings and maximizing shareholder returns, not succeeding in an environmental or social mission. Furthermore, one odd trend to note is that many popular ESG funds invest in US tech companies rather than companies benefiting the environment. The top 5 holdings of the Vanguard ESG U.S. Stock ETF are Microsoft, Apple, Nvidia, Amazon, and Meta Platforms. This trend displays favoritism in the industry, as tech companies are glorified and energy companies are demonized.
Energy Policies and Other Issues with Renewables
It is very fortunate that Blackrock and other major investment groups have decided to change their course and provide more support for US energy companies. US energy companies are an important part of the US economy, as many states heavily rely on this industry for economic prosperity. Moreover, it is very important for the United States to continue increasing its oil production to achieve energy independence and be less volatile to supply disruptions during geopolitical events, as we saw in 2022. ESG mandates interrupt this process and can make the United States economically and politically vulnerable during conflicts.
It is also crucial to note that many forms of alternative energy, such as solar energy, also have their share of environmental issues. Solar panels and EV batteries require silver, lithium, and other rare earth metals, yet the negative impact of mining these minerals is often overlooked. Accordingly, it is best for the United States to focus on its economy and energy security instead of shallow social movements that also have negative environmental externalities.
Final Thoughts
Although many large companies have stepped back from ESG measures, it is still crucial for politicians to push back against any ESG advocates who attempt to control American companies. Many of these measures are terrible for the economy and can strip away liberties from individuals. Although ESG may be on a downtrend now, other movements could rebrand and develop new and dishonest greenwashing techniques.