See if you can spot the intellectual inconsistency in the article in the url below:
"ESG funds that recently took the controversial step of dropping restrictions on weapons manufacturers are now reaping the financial rewards of that decision. Defense stocks were among the best performers when markets opened on Monday after war erupted in the Middle East. That adds to a longer stretch of gains for the sector, with the MSCI Europe Aerospace and Defense Index almost doubling in value since the beginning of last year."
Clearly, ideological flexibility can be useful, especially when the primary goal is to make money:
"For ESG funds, those stocks would traditionally have been off limits. But last year saw a major shift in investor willingness to embrace arms manufacturers, with many casting the move as key to defending democracy. More than half of European funds registered as 'promoting' environmental, social and governance goals were invested in defense assets by the middle of last year, Morningstar Sustainalytics reported in August. That marked a quadrupling since Russia's 2022 invasion of Ukraine, the research firm said."
The money-making opportunities seem unlimited, particularly when there are no principles holding you back:
"The shift underscores how ESG investing is adapting to a new geopolitical reality. Other major adjustments are showing signs of paying off. Some money managers have cut their exposure to US Treasuries, which slid on Monday on concern the war in the Middle East may trigger another bout of inflation. At the same time, ESG funds that shun fossil-fuel producers for environmental reasons have missed out as oil and gas stocks rallied during the escalating conflict."
Unfortunately with ESG, the goal was never a serious attempt to build a more sustainable economy or society.
Take care
David
David Chandler
Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)
© Sage Publications, 2023
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Norway Wealth Fund Says AI Caught Risks That Others Missed
By Frances Schwartzkopff
February 26, 2026
Bloomberg
