Why Value Investing Beats ESG
ESG investing is everywhere. Companies promote it. Fund managers package it. And headlines can’t stop praising it. But behind the buzz, there’s a growing suspicion that ESG is less about saving the world — and more about saving face.
Let’s be blunt: people don’t trust ESG. And with good reason.
While investors are told they’re “doing good” with their money, most ESG efforts are driven by corporations themselves — the very institutions ESG is supposed to hold accountable. Funny, that.
Meanwhile, the old-school approach of long-term value investing continues to quietly outperform, without the hypocrisy. It doesn’t hide behind buzzwords. It doesn’t pretend to be noble. It simply aims to invest in good businesses that grow over time.
And that’s exactly why value investing beats ESG.
ESG Isn’t Ethical — It’s Corporate PR
ESG Scam is sold as a set of values. But in reality, it’s a corporate strategy.
Firms don’t adopt ESG because they want to “do good.” They adopt it because it protects their image, attracts investor money, and keeps regulators off their backs.
Think about it. A company can fire half its workforce, automate jobs, jack up prices, and still get a great ESG score — as long as it ticks the right boxes: a recycled packaging initiative here, a vague carbon pledge there, and a diversity report no one reads.
ESG has become a shield, not a solution.
It gives companies a way to present themselves as morally responsible — all while continuing with business as usual behind the scenes.
Green Labels, Same Profits
You might expect ESG funds to avoid polluters, tax dodgers, or companies with shady ethics. But open up a typical ESG fund, and what do you see?
Tech monopolies. Oil giants with rebranded mission statements. Banks with long histories of questionable behaviour.
Why? Because ESG doesn’t change how capitalism works. It just creates a new product line — one that sells well to guilt-ridden investors. And those investors often end up paying higher fees for the illusion of doing good, while the corporations smile all the way to the bank.
Let’s be clear: ESG isn’t about values. It’s about controlling the narrative.
The Real Danger of ESG
ESG investing lets people feel ethical without thinking too hard.
You don’t need to understand a company’s actual business model. You don’t need to look at financials. You just need to see that ESG label and relax. It’s all taken care of, right?
Wrong.
This kind of lazy investing is exactly what corporate leaders want. It discourages scrutiny. It rewards box-ticking over substance. And it gives companies a cheap licence to operate in the eyes of the public.
Meanwhile, investors are left holding portfolios filled with hollow promises, vague commitments, and stocks picked more for their optics than their outlook.
Value Investing Has No Agenda — And That’s a Good Thing
Now, let’s turn to something a bit less trendy, but far more honest: value investing.
Value investing doesn’t pretend to change the world. It doesn’t need to. It simply focuses on what actually matters in the long run:
- A solid business model
- Sensible leadership
- Real profits
- A fair price
You don’t invest in a company because it has a sustainability consultant. You invest because it delivers value, plays the long game, and avoids the kind of risks that sink businesses — including the reputational ones ESG claims to cover.
And ironically, that’s where real ethical investing lives: in clear thinking, not shallow branding.
ESG vs Value: One Obscures, One Reveals
Let’s call it what it is: ESG obscures the truth. Value investing reveals it.
ESG asks: How does this company look on paper?
Value investing asks: How does this company actually work?
ESG gets distracted by what companies say. Value investing pays attention to what companies do.
And most importantly, value investing treats you like a grown-up. It assumes you’re willing to think, to question, and to stick around for the long term. ESG, by contrast, sells you a feel-good shortcut that costs more and delivers less.
Who Really Wins with ESG?
Not investors. Not the environment. Not society.
The winners of ESG investing are the corporations, the consultants, and the fund managers. They get to:
- Raise money without tough questions
- Avoid regulation by self-regulating
- Charge more by offering less
- Attract media praise for minimal effort
It’s a win-win for them. And for you? It’s a lot of trust, placed in systems designed by the very people you’re supposed to be keeping an eye on.
Conclusion: Don’t Be Fooled
The world doesn’t need another investment acronym. It needs honest, long-term thinking.
Forget the ESG fluff. Forget the greenwashing, the vague reports, and the expensive feel-good funds.
If you want to invest responsibly, there’s a better path — one that’s existed for nearly a century: value investing.
It’s not glamorous. It won’t win any awards. But it works.
Because while ESG tries to disguise capitalism, value investing simply understands it — and plays it wisely.
In the end, value investing beats ESG—not just financially but morally—because honesty, discipline, and long-term thinking will always matter more than slogans.
