ESG: Return of the Living Dead
What to know: Investors are rethinking environmental, social, and governance (ESG) strategies that put political objectives above return-on-investment for their clients.
The TPPF take: The real problem with ESG is that it is used to force companies to adopt political agendas that are bad for their shareholders and society at large.
“Advocates for ESG argue that companies that adopt these principles are less risky and more prepared for the long term,” says TPPF intern Sloane Ennis . “But what ESG actually does is force companies to stray from their core missions and waste money pursuing ambiguous goals, leading to worse performance. As a result, companies that embrace ESG ’stakeholders’ consistently underperform those that put their shareholders first.”
For more on ESG investing, click here.
Don’t Let the Summer Slip Away
What to know: Grab your cooler and pack up the car; Americans are hitting the road this summer.
The TPPF take: America is worth rediscovering. We recommend Route 66, which passes through the Texas panhandle.
“There’s something about Route 66 that rises above the everyday and even the political,” says TPPF’s Roy Maynard. “People get along here because they’ve come to connect to something bigger. People don’t visit Route 66 to change America; they come to be changed by it.”
For more on summer travel, click here.
No Gas
What to know: Honda has reportedly pulled the plug on an upcoming electric SUV, after the “One Big, Beautiful Bill” was signed into law—wiping out federal subsidies for electric vehicles.
The TPPF take: Demand for electric vehicles depends heavily upon state and federal subsidies and mandates. Without those policy drivers, expect EV demand to drop significantly.
“Proponents of EVs have falsely pushed the claim that EVs will soon cost less than gas-powered cars. Our data shows that EVs are still a long way from being cost-competitive without massive subsidies,” says TPPF’s Brent Bennett. “Now that the federal subsidies for EVs are ending, EVs will have to compete with gas vehicles on their own merits, as they should.”
For more on electric vehicles, click here.