From Bill Blain's Morning Porridge, May 23:
HSBC is being pilloried for comments made by its’ ESG head, but what he said is worthy of consideration. Overly emotional ESG is a distortion that may be as dangerous as climate change denial.
“Life always finds a way…”
This morning: HSBC is being pilloried for comments made by its’ ESG head, but what he said is worthy of consideration. Overly emotional ESG is a distortion that may be as dangerous as climate change denial.
Perhaps the most remarkable thing about Stuart Kirk, the “global head of responsible investing” at HSBC, is that’s he a bloke with a grey beard… Kirk and his ilk are a critically endangered species in The City these days.. and about to become even more so after his inflammatory comments to an FT conference last week.…
Kirk is was an HSBC executive until being suspended for daring to suggest the whole ESG (Environment, Social and Governance) debate has become a tad over-emotional and vulnerable to distortion and hyperbole. Naturally, the ESG industry has kicked into high gear moral indignation, shocked and horrified at his comments. I will be surprised if he isn’t sued for the emotional hurt, pain, distress and damage he’s inflicted on ESG professionals.
Yet, Kirk is a smart guy – he’s the former editor of the FT’s Lex column and had responsibility at HSCB for ESG and new green product development.
Let me stress: I wasn’t there but I have watched his speech on the FT website. Its actually very interesting, thought-provoking, and well worth a listen no matter how much you might disagree with what you’ve read in the press about it.
It will make you think – and its about time we did more of that when it comes to preparing for the consequences of climate change.
Most of Kirk’s speech was pushing against overly-emotional doom-mongers, like a lady from Deloitte called Sharon. Kirk noted that when she told the audience climate change meant everyone in the room was dead, most didn’t even look up from their mobile phones. He also criticised some chap called Mark, a former central banker who is making a fairly good living jetting round the world to spread climate hyperbole. Kirk got a decent clap at the end of his 15 minute pre-coffee conference slot.
For some reason I can’t quite fathom, I tend not to get invited to ESG and sustainability conferences. It doesn’t seem to matter how many times I say I absolutely agree with the science of global warming, or environmental damage must be addressed, but apparently the BBC has me down as a climate change denier because I suggested wind-farms ain’t all they are presented to be when it comes to reliability and power to the grid.
The quotes that have appeared on Kirk’s slot have been selective and contextualised. The media has been delighted by the shocked hysterical comments from the ESG high church of woke. Having watched Kirk on the Video, I doubt he will do the usual banker-caught-with-finger-in-till thing by stepping up later today, making a cringe-worthy apology for his comments.. and resigning in shame. He will, of course, be sacked… for putting his employer at risk by daring to question the hyperbole around ESG.
Naturally, HSBC’s leadership cadre has reacted with horror and shock – even though the speech was approved 2 months ago and has been sitting (unread?) on the company website..
Although Kirks comments have proved remarkably ill-judged in terms of his career longevity.. they are worth thinking about… The most hyped quote is “who cares if Miami is six meters underwater in 100 years time”, before he explained Amsterdam copes rather well with being below sea-level. He argued that solutions will be found because mankind adapts. He then talked about “nut-jobs telling me about the end of the world.”
And that’s a critical thing. Mankind is inventive and we adapt. We cope. Coping with change is why we thrive....
....MUCH MORE
HT: ZH
