{"id":1997786,"date":"2023-08-11T12:44:01","date_gmt":"2023-08-11T16:44:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-states-applaud-cancellation-of-esg-scores\/"},"modified":"2023-08-11T12:47:12","modified_gmt":"2023-08-11T16:47:12","slug":"red-states-applaud-cancellation-of-esg-scores","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-states-applaud-cancellation-of-esg-scores\/","title":{"rendered":"Red states cheer as ESG scores get canceled."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fred-states-applaud-cancellation-of-esg-scores%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1997786&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Standard &#038; Poor&#8217;s Drops ESG Scores from Credit Ratings<\/h2>\n<p>Several states are celebrating as Standard &#038; Poor&#8217;s (S&#038;P), one of the\u200b world&#8217;s \u2063largest credit\u200c rating agencies, announced that it will no longer include environmental, social, and governance (ESG) scores in its credit ratings. This decision \u200dcomes after a year of states being \u2064subjected to these scores, which measure compliance with progressive criteria such as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/not-a-joke-john-kerry-is-worried-war-in-ukraine-will-distract-world-leaders-from-climate-change\/\" title=\"Not A Joke: John Kerry Is Worried War In Ukraine Will Distract World Leaders From Climate Change\">reducing fossil fuels<\/a> and supporting equity.<\/p>\n<p>ESG scores have been used by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stocks-tank-after-fitch-downgrades-u-s-credit-rating\/\" title=\"Stocks plummet after Fitch lowers U.S. credit rating.\">rating \u200bagencies<\/a> like S&#038;P, \u200bMoody&#8217;s,\u2063 and Morningstar, as well\u2064 as\u2062 organizations like the Human Rights Campaign, to assess companies&#8217; commitment to environmental and\u200d social issues. However, the expansion of ESG scoring to include cities, states, and countries drew backlash from several U.S. states, \u2063including Utah, which demanded an end\u2062 to the practice.<\/p>\n<blockquote>\n<h3><b>Victory for States<\/b><\/h3>\n<p>Utah state treasurer Marlo Oaks, along with\u200b other <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrat-big-tech-and-media-actions-to-steal-the-election-heres-whats-going-on-in-pennsylvania-and-michigan\/\" title=\"Democrat, Big Tech and Media Actions to Steal the Election \u2013 Here\u2019s What\u2019s Going on in Pennsylvania and Michigan\">state leaders<\/a>, \u200dsent \u2063a letter to\u2062 S&#038;P demanding an end to the inclusion of ESG scores in credit ratings. Now, with S&#038;P&#8217;s reversal, Oaks is hopeful for a change in the financial landscape.<\/p>\n<\/blockquote>\n<p>S&#038;P clarified \u200dthat while it will continue to provide information about companies&#8217;\u2063 ESG practices, it will no longer calculate numerical ESG scores. Instead, \u2064the agency will focus on providing \u200bdetailed\u2063 narratives about ESG\u200c factors that influence creditworthiness.<\/p>\n<p>Some experts believe that S&#038;P&#8217;s retreat from ESG is a\u200d response to pressure \u2062from Republican lawmakers. However, critics argue that ESG scores are subjective and politically motivated, with little correlation to a borrower&#8217;s actual creditworthiness.<\/p>\n<blockquote>\n<h3><b>ESG&#8217;s Impact on Financial Health<\/b><\/h3>\n<p>In addition to credit ratings, S&#038;P also launched \u200bthe S&#038;P 500 ESG Index, which measures the performance of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-states-applaud-cancellation-of-esg-scores\/\" title=\"Red states cheer as ESG scores get canceled.\">securities meeting sustainability criteria<\/a>. While the ESG index initially outperformed the S&#038;P 500,\u2062 its focus on &#8220;green&#8221; companies \u200cled to underperformance when energy companies rebounded.<\/p>\n<\/blockquote>\n<p>As the \u200cESG industry faces scrutiny, more companies are distancing \u200dthemselves from the term. Larry \u2062Fink, CEO of\u2063 BlackRock, recently announced that he would no \u200clonger\u2063 use the \u200cterm ESG. Now, with\u200d S&#038;P dropping ESG scores, it seems that \u200dthe\u200c tide may be turning against this controversial measure of corporate\u2063 responsibility.<\/p>\n<blockquote>\n<h3><b>Debating ESG\u200b Discrepancies<\/b><\/h3>\n<p>Credit ratings are meant\u200d to assess \u2062a borrower&#8217;s ability to \u2063repay debt, but the addition of ESG criteria has\u200d raised concerns about \u2062transparency\u200c and objectivity. While\u200b some companies offer \u2062consulting services to\u2062 improve ESG scores, others argue that these scores have little to do with\u2062 a \u2064borrower&#8217;s financial health.<\/p>\n<\/blockquote>\n<p>With S&#038;P&#8217;s decision to remove \u200bESG scores from credit ratings, the future of ESG\u2063 as a measure of financial health remains uncertain. As the debate continues, it is clear that the ESG industry \u2063is <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-navy-says-fight-with-china-is-likely-in-the-2020s\/\" title=\"U.S. Navy Says Fight With China Is Likely in the 2020s\">facing significant challenges<\/a> and \u200bmay need to redefine its approach.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Some states, previously under environmental and social credit scores, are not upset as Standard &amp; Poor&#8217;s (S&amp;P) decided to exclude ESG scores from its credit ratings. S&amp;P, a major credit rating agency, made this announcement last week.<\/p>\n","protected":false},"author":887,"featured_media":1997787,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1997786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1997786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/887"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1997786"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1997786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1997787"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1997786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1997786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1997786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}