“Depoliticizing companies”: Against the ESG stream

Investor Vivek Ramaswamy thinks companies are too woke. That goes down very well on the right-wing political fringe. Now he’s putting pressure on Apple and Disney.

Vivek Ramaswamy has recently been sending many letters to the CEOs of large American corporations. One recently went to Chevron. Ramaswamy wrote that he now held shares in the American oil giant through his investment company and wanted to have a say in the matter from now on. His message: Chevron must produce more oil “proudly, publicly and without apologies”. Investments should be judged solely on the basis of their measurable returns, without considering any environmental goals or even social and political factors. Chevron should also stop spending resources on things like sustainability reports unless they are demonstrably good for shareholder value.

A few days ago, Apple and Walt Disney also received warning letters from Ramaswamy. He urged Apple to commit to hiring based on ability, not gender, race, or political affiliation. This was necessary because large investors such as the prominent wealth manager Blackrock put pressure on the company to follow “value-destroying rules” when recruiting. “The purpose of Apple’s board of directors is to serve its shareholders.”