What role does the ESG “wake up” cartel play in cannabis industry?
Therefore, the Environmental Social Governance Cartel (ESG) woke up to save the situation. People love to grow and consume cannabis. We can’t have that!
Rather than measuring success based on happy customers and increasing profit margins, ESG proponents say business owners should balance the success of the cannabis industry with environmental, social and governance aspects.
But, as Elon Musk correctly tweeted, “ESG is a scam.”
ESG Investing vs. Common Sense
Investing in Environmental and Social Governance (ESG) is a type of activist index funding that the cannabis industry should avoid like the plague.
Traditionally, you assess a company’s viability through balance sheets, cash flow statements, income statements, shareholder equity statements, etc.
You usually calculate ratios to give you a glimpse into a company’s financial position.
The debt-to-equity ratio indicates the ratio of equity and debt used to finance a company’s assets.
The ratio of cash assets that compares current assets with liabilities. Return on equity is the net income return as a percentage of equity.
or net profit margin. This refers to the efficiency of work in controlling costs. A higher net profit margin shows more efficiency in converting revenue into actual profit.
Many people struggle with these concepts. Or they remain completely ignorant of them. And not just your average Joe.
Consider political leaders who have blamed inflation on “corporate greed.” Major grocery store chains are posting record profits. This has led to a demand for a tax on wealth by a left-leaning demagogue.
But if you look beyond the headlines, you’ll see that net profit margins are either the same or, in some cases, lower.
Or take Canada Licensed Producers of cannabis. How many positive cash flow?
There is more to a complex capitalist economy than just profit and loss. However, critics of capitalism do not usually think of the problem that far.
This leads us to invest in Environmental and Social Governance, or ESG.
What is an ESG investment?
It would be wise for the cannabis industry to avoid investing focused on environment, society and governance if possible.
Like labor unions that reduce productivity in pursuit of political goals, the situation in which investment in ESG becomes mandatory is problematic.
Suddenly, a company’s financial health does not depend on whether it serves consumers effectively, but rather on the standards set by politicians.
The ESG Index is a Chinese-style social credit score for companies.
Many would cheer that we are “we” cops. But this is a simplified reading that does not require anything beyond superficial analysis.
ESG has one goal: to create an awakened cartel.
Like how governments are splitting citizens with domestic coronavirus vaccine passports, the ESG aims to split the cannabis industry in two.
There will be those in line with the demands of environmental, social and institutional governance that have awakened. And then some prefer to run their business based on the input of their clients.
Of course, just like how you can’t perform basic activities without a vax-pass, cannabis companies that don’t comply with the ESG will find the investment drains.
It will be difficult to do business when you are ‘non-compliant’.
Prove ESG is a scam
Who is the Awakened ESG Cartel? And why is it a scam for everyone, not just the cannabis industry?
Take Elon Musk, for example. He pulled Tesla out of the ESG index in the S&P 500 earlier this year.
Tesla has produced more electric cars that people want to buy and drive than any other automaker.
That should have ranked Tesla #1 in the ESG, right?
No, ExxonMobil ranks higher than Tesla, as well as JPMorgan, the world’s largest investor in oil producers.
Why is Tesla ranked lower than greenhouse gas producers and investors?
Apparently, it had to do with Tesla’s carbon strategy and code of conduct. Tesla did not have a “low carbon strategy”. Which seems more important than producing fewer tons of carbon.
Also, Tesla has suffered allegations of racial discrimination and poor working conditions at its factory in Fremont.
Now, no one is saying that these are not issues that should or should not affect the bottom line. But who decides? Buying audience? Or an ESG index run by global companies and technocrats at the World Economic Forum?
ESG is a political landscape. It is supposed to separate the awake from the unawakened. And since he called covid lockdowns fascist policies, Elon Musk has been in the “no-wake-up” category.
BlackRock & Vanguard: Should the cannabis industry worry about ESG?
BlackRock is the largest asset management company in the world, with Vanguard coming in second. Both stand behind what they call “stakeholder capitalism,” which is the belief that companies should benefit their “stakeholders,” rather than their shareholders.
Larry Fink, CEO of BlackRock, declared in his “2021 letter to CEOs,” that “climate risk is an investment risk.”
“Creating sustainable index investments has enabled a massive acceleration of capital toward companies that are better prepared for climate risks.
“And because this will have a significant impact on how capital is allocated, every management team and board of directors will need to think about how this will affect their company’s stock.”
Or, as founder and president of the World Economic Forum Klaus Schwab put it: “Every country, from the United States to China, and every industry, from oil and gas to technology, must change. In short, we need a ‘Great Reset’ of capitalism.”
Or, as Fink put it, “It is not a social or ideological agenda. It is not “wake up”. It’s capitalism. ”
But it is very clear that this is syndicalism, also known as economic fascism. A handful of large corporations coordinate production and the special interest groups that dictate the mores of society.
Corporate power combines with state power to advance ideological agendas. In this case, they are dismantling small businesses and creating a social credit system.
The end result will be an extra focus of corporate power, fewer individual liberties, and more publicity about how your suffering is good for the planet.
Yes, the cannabis industry should be concerned about ESG. ESG is not some future assumption. It is already here.
The cannabis industry is already infected with ESG
You don’t have to go far to find the cannabis industry is already infected with ESG-centric ideas.
Canadian company HEXO has publicly stated that it wants to be carbon neutral. Same with food maker Wild, who wants to produce biodegradable packaging.
But, of course, that’s not how ESG works.
Trulieve cannabis company has a dedicated ESG report. They even have a board committee on Environmental, Social and Corporate Governance and boast commitments to “diversity, inclusion and equity.”
Cannabis companies are leaping into the realm of environmental, social, and corporate governance without fully understanding its meaning.
On the one hand, you will lose the independence of your business to unselected bureaucrats and corporate asset managers.
On the other hand, you will lose customers. “Wake up, go bankrupt,” is a mantra that has been proven true over and over again.
Cannabis consumers want high-quality cannabis. Only racists care about the skin color or ethnicity of a farmer or youngster.
ESG is a benchmark for measuring compliance with the global elite.
And some take propaganda at its word. This ESG is about Climate change. Those who disagree with Schwab and the WEF are “right-wing extremists”.
These people are in a rude awakening.