Week 33: How sustainable is Facebook?

ESG analysis of Facebook. We are all in denial. When they “write down assets” it is bad for all of us. Double standards in European banks. And funds branded ‘ESG’ are laden with tech stocks.

Dear all,

I hope everyone is doing well. And that you are ready for a new edition of ’ESG on a Sunday’.

How sustainable is Facebook?

It is a bit spooky to write about tech firms, previously Amazon and Alibaba, and now Facebook. One man, one idea and a huge leap of faith are some of the characteristics of people shaping our world today — and our future.

Again and again, all the systems, all the tech, all of it . It’s all about people. Is Facebook a different story?

Well, you need to read my new ESG analysis of Facebook to find out.

One thing I would like to say here, is that I started work on this analysis with a lot of scepticism – after all I’ve previously had to “quarantine” Facebook investments.

But this kind of analysis requires an open mindset, no prejudice, and I find that today I have a more balanced view of Facebook.

Please let me know your thoughts.

With climate change we are all in denial

We move on to climate change. It is what it is, and we are slowly boiling in the kettle, telling each other “this is bad”, looking around thinking “it will not affect me so much, maybe my neighbour, but not me.”

It is like a giant denial trip we all participate in. It all starts with us, the people living on this planet that we are so thoroughly trashing to pieces.

Read this article from Bloomberg to see how real climate change is.

When they “write down assets” it is bad for all of us 

Global systems are interconnected. You pension savings depend on planet Earth’s ability to survive. Oil companies are heavily used in various benchmarks, their weight reflected in how your pensions are invested.

In the last nine months, the world’s largest listed oil companies have wiped almost $90bn from the value of their oil and gas assets as the coronavirus pandemic has accelerated a global shift away from fossil fuels.

So, just to be clear, when they “write down assets” it is bad for all of us.

Read this piece from Guardian.

Double standards in European banks

We had a planet. Then companies began writing down assets due to the planet being destroyed. And now the financial institutions are playing the Russian Roulette.

No, it’s not black and white. It’s grey. The question is: What shade of grey?

This piece gives you a “feeling” of how screwed our system is.

Funds branded ‘ESG’ are laden with technology stocks

We end where we started: With Facebook and Big Tech and the question of how sustainable these companies are.

In ESG funds, ownership of tech stocks that have soared in recent years, especially during the Covid-19 crisis.

In this case, the real story is not about Big Tech, but about the ESG funds and the criteria (or lack thereof) for picking stocks. Has ESG simply become a way to brand funds? Read here.

And that’s it. Happy Sunday reading!

Best regards, Sasja