Source:
https://reason.com/2020/12/09/dont-believe-the-hype-about-socially-responsible-investing/
" ... Parnassus says it picks investments based on "their environmental impact, how they treat their employees, the quality of their relationships with local communities." People believe. More than $100 billion poured in just in the first half of this year.
One popular "socially responsible" fund, Generation Investments, is run by former Vice President Al Gore. His website claims they invest in "sustainable" companies that do things "consistent with a low-carbon, prosperous, equitable, healthy and safe society."
...They do enhance his returns. The management fees help him pay for his many homes.
..."I've had a lot of experience looking at these types of investments," says Thomas Hogan, senior research fellow at the American Institute for Economic Research. "They don't actually accomplish the goals of being environmentally or socially responsible."
Al Gore's Generations Investments ..."They're not really making socially conscious investments," says Hogan. "Their No. 1 holding is Alphabet, parent company of Google. They're just buying, basically, regular companies."
So, why do people invest? "It makes people feel good," says Hogan.
... Parnassus' brags that it owns US Foods and Clorox. What's special about them?
... BlackRock's socially "aware" fund brags that it gives you 2.62 percent more exposure to gender diverse boards. 2.6 percent? So what? Their "environmentally aware" fund also invests in Chevron and Exxon.
... most "green" funds wouldn't invest in the Keystone pipeline, but pipelines are much better for the environment than the alternative: hauling oil by train and truck.
... The ugly truth is that most so-called responsible investment funds charge more to sell feel-good nonsense that accomplishes nothing.
Instead, suggests Hogan, invest in any company that produces things people want. All those companies "(create) a lot of value for society."