The March of Folly Over ESG Investing.

The article discusses the failure of environmental, social, and governance (ESG) investing to deliver financial performance and societal benefits. It highlights the alignment of interests among politicians, regulators, financial institutions, and intermediaries that drove the housing bubble and the 2008 financial crisis. The article argues that ESG funds often ignore diversification and rely on inconsistent and oversimplified ESG scores. It also criticizes the European bias in ESG investing and the Securities and Exchange Commission's proposed climate-disclosure measures. The authors suggest that Congress and the White House should handle complex issues like the energy transition, and the SEC should require ESG funds to inform investors about nonfinancial factors and their impact on financial performance. [Extracted from the article]