Mark Neuman, CIO and founder of Constrained Capital, talks with Chris Carosa of Forbes on the impact ESG funds have in the overall landscape of their respective industries. Neuman highlights sustainability ESGs stating, “70-80% of ESG funds hold Amazon, which has the top global carbon footprint and is the #3 holding at ESGUU +1.8% and ESGV +1.6% (Blackrock’s and Vanguard’s ESG flagships respectively).”
Well, ESG funds need to start telling the truth. Same with Coke and Pepsi, top contributors to Type II diabetes/obesity costing the USA over $1TLN/year yet Nuveen’s ESG flagship fund owns KO/PEP as the top 2 holdings. There’s no consistent measure of E, S, or G. They make it up as they go, telling everyone ESG and being good is costless and returns are better. This has been proven by finance luminaries and academia, yet few admit it. Constrained Capital is unabashedly honest about it, telling everyone. We created a product to capitalize on the coming ESG unwind. The truth shall set you free, and likely outperform over time!