Harvard Law School Blog on Value Based Investing v. Values Based Investing

What is happening? In response to US Senate Republicans drafting legislation requiring pensions to make investment decisions based solely on monetary issue. IN pop news parlance this is whether pensions should invest in ESG or should pensions make woke investments—dependent upon your pop news channel.

Why is this important? This issue will play out in state Legislatures throughout the country. Value based investment being solely monetary and values based investing being ” investing according to a set of principles irrespective of any link between those principles and economic value.” The authors say- there is no difference is unclear at best.

How will this be important? Which side wins the messaging….” Conservatives who complain that ESG investing is a way of forcing a social and environmental agenda on companies that has nothing to do with company profitability, perhaps even hurting it, need to look in the mirror if they are creating anti-ESG funds of their own. This is simply swapping out one set of values for another. Both are forms of Socially Responsible Investing.”

The Harvard Law School Forum on Corporate Governance | The Politics of Values-Based Investing