Former fracking company CEO Chris Wright has been making headlines recently for his involvement in efforts to roll back workers’ choices in socially conscious ESG (Environmental, Social, and Governance) investing. As a leader in the energy industry, Wright has been a vocal advocate for traditional fossil fuels and has been actively working to undermine the growing trend of ESG investing.
ESG investing, also known as socially responsible investing, is a practice that takes into account a company’s impact on the environment, society, and corporate governance when making investment decisions. This type of investing has gained popularity in recent years as more and more people are becoming aware of the importance of sustainability and ethical business practices.
However, Chris Wright, the former CEO of Liberty Oilfield Services, has been a vocal opponent of ESG investing. He has been using his position and influence to push for policies that limit workers’ choices in investing their retirement savings in ESG funds. This has raised concerns among investors and advocates for socially responsible investing, who see this as a threat to their ability to align their investments with their values.
Wright’s opposition to ESG investing is not surprising, given his background in the energy industry. Fracking, the process of extracting oil and gas from shale rock, has been a controversial practice due to its negative impact on the environment. It has been linked to air and water pollution, as well as earthquakes in some areas. As the CEO of a fracking company, Wright has a vested interest in promoting the use of fossil fuels and downplaying their negative effects.
In addition to his role as CEO, Wright is also a board member of the National Association of Manufacturers (NAM), a powerful lobbying group that represents the interests of the manufacturing industry. NAM has been actively lobbying against ESG investing, claiming that it limits workers’ choices and hurts the economy. Wright has been using his position at NAM to push for legislation that would restrict workers’ access to ESG funds in their retirement plans.
This is a concerning development for those who believe in the power of ESG investing to drive positive change. By limiting workers’ choices, Wright and NAM are essentially silencing their voices and preventing them from using their retirement savings to support companies that align with their values. This goes against the very essence of ESG investing, which is to use the power of capital to drive positive social and environmental impact.
Wright’s actions have not gone unnoticed, and there has been a backlash from investors and advocates for ESG investing. In response to his efforts, a group of investors, including religious organizations and pension funds, have filed a shareholder resolution urging Liberty Oilfield Services to offer ESG investment options in their retirement plans. This resolution has gained significant support, with over 30% of shareholders voting in favor of it.
Despite this pushback, Wright remains steadfast in his opposition to ESG investing. In an interview with CNBC, he stated that he believes ESG investing is a “fad” and that it is not the role of companies to promote social and environmental causes. He also claimed that ESG investing is not profitable and would hurt workers’ retirement savings.
However, the data tells a different story. Studies have shown that companies with strong ESG practices tend to outperform their peers in terms of financial performance. In fact, a report by Morgan Stanley found that sustainable funds have performed better than traditional funds during the COVID-19 pandemic. This goes to show that ESG investing is not just a “fad,” but a sound investment strategy that can benefit both investors and society as a whole.
In the face of mounting evidence and growing support for ESG investing, it is clear that Chris Wright’s efforts to roll back workers’ choices in this area are misguided and harmful. As a leader in the energy industry, he has a responsibility to consider the long-term impact of his actions on the environment and society. Instead of fighting against ESG investing, he should be embracing it and working towards a more sustainable future.
In conclusion, Chris Wright’s role in the fight against ESG investing is concerning and goes against the growing trend of socially responsible investing. As investors and consumers become more conscious of the impact of their choices, it is important for companies to align with their values and promote positive change. Wright’s actions only serve to hinder this progress and limit workers’ choices. It is time for him to reconsider his stance and embrace the power of ESG investing for the betterment of society and the environment.
