Opinion
Environmental Madness on Wall Street is Silencing Research Analysts
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By Paul Tice
From London to New York, an iron curtain is rapidly descending on research departments across Wall Street in the form of the sustainable investment movement, which posits that environmental , social, and governance, or ESG , factors are the key to market outperformance over the long term. Analysts that don’t get on board with the ESG program — especially when it comes to climate action and the need to decarbonize — run the risk of being canceled.
Like the lawyers in Shakespeare’s Henry VI, Wall Street research analysts — whose fundamental sector and company analysis provides the underpinnings for security valuation and efficient primary and liquid secondary trading markets — stand in the way of the ESG mob now intent on creating a “sustainable global financial system.”
Consequently, one of the first things that ESG activists have focused on with their integration efforts over the past five years has been to co-opt research analysts on both the sell-side and the buy-side of the business and enlist them — mostly under duress — to serve as the Praetorian Guard for the ESG movement.
Read the full Washington Examiner article.
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Paul Tice is an Adjunct Professor of Finance at NYU Stern.
Like the lawyers in Shakespeare’s Henry VI, Wall Street research analysts — whose fundamental sector and company analysis provides the underpinnings for security valuation and efficient primary and liquid secondary trading markets — stand in the way of the ESG mob now intent on creating a “sustainable global financial system.”
Consequently, one of the first things that ESG activists have focused on with their integration efforts over the past five years has been to co-opt research analysts on both the sell-side and the buy-side of the business and enlist them — mostly under duress — to serve as the Praetorian Guard for the ESG movement.
Read the full Washington Examiner article.
____
Paul Tice is an Adjunct Professor of Finance at NYU Stern.