ESG Has Hit the Human Rights Iceberg
The Hon. Keith Krach
07.12.22
There’s a huge flaw in how Environmental, Social, Governmental (ESG) investment is currently structured, and it can summed it up in one word: China.
Source: The Epoch Times
Throughout my career, I often said “corporate responsibility is social responsibility.” Nothing exemplifies an attempt to make that a reality today as much as ESG, or “Environmental, Social, and Governance” criteria, that an increasing number of companies and corporations are signing up for.
Essentially, if a company signs up for ESG, it agrees to conduct itself in a way that respects the environment, contributes to local communities, and is honest and transparent in its financial practices. This enables conscientious investors to invest their money in companies that don’t violate their values and contribute to making the world a better place.
ESG began approximately fifteen years ago with companies operating by its standards collectively worth around $17 billion. Today, that number is nearly $20 trillion. The power of the ESG community cannot be underestimated.
But there’s a huge flaw in how ESG is currently structured, and I can sum it up in one word: China.
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The Era Of ‘Tech Diplomacy’ Is Here
Technology is the new frontier of international relations. The interaction is bi-directional: technology is defining diplomatic matters while diplomacy is also influencing the development and deployment of technology. Take semiconductors as an example. This is a technology that forms the foundation of digital economy, national security, and productivity in almost all industries. Global supply chain in the semiconductor industry is shaping U.S. foreign policy. Conversely, America’s diplomatic effort has been redefining the supply chain. Tech diplomacy is different from science diplomacy, which became a key pillar for the U.S. and other countries since World War II. Scientists participated in treaty negotiations, engaged in bilateral summits and served as attachés at embassies. Primary topics included nuclear proliferation, super-collider construction, human space exploration and environmental science.