Business
No reliable evidence that ESG investing produces above-average returns

From the Fraser Institute
Despite growing skepticism among investors, as evidenced by their withdrawal of billions of dollars from ESG equity funds so far in 2024, many finance industry leaders continue to claim that ESG-focused investing produces above-average returns.
But is that true?
Environmental, social and governance (ESG) is a movement designed to pressure businesses and investors to pursue larger social goals. According to ESG theory, firms that receive poor ratings from ESG rating agencies should lose investment dollars. Yet the claim that ESG-focused investing can help investors do well by doing good has received surprisingly little empirical support from academic studies.
However, according to a new study published by the Fraser Institute, which tracked 310 companies listed on the Toronto Stock Exchange from 2013 to 2020, neither ESG rating upgrades nor downgrades were related in a statistically significant way to the stock market performance of companies.
Moreover, because the study finds that ESG ratings changes—which, when released, are effectively new information for investors—are not consistently related to financial returns, ESG ratings are likely not relevant to the expected future profitability of publicly listed companies in Canada.
This of course raises the question—if new information (i.e. ratings changes) about a company’s ESG-related practises is not statistically related to equity returns from investing in that company, why do money managers pay for the services of ESG rating companies?
One possible reason is that managers pass a substantial share of the costs along to customers who are willing to sacrifice financial returns (due to higher management fees) to express their commitment to environmental sustainability and other social causes. Another possible reason is that promoting ESG-focused investment alternatives appears to have been, at least until recently, an effective marketing tool.
But again, the empirical evidence suggests there’s no reliable statistical relationship between ESG-focused investing and the risk-adjusted returns earned by investors. And since asset managers typically charge higher fees for ESG-focused mutual funds, ESG investment strategies are more likely to underperform than overperform conventional investment strategies.
Certainly, if some percentage of investors choose to pursue ESG-related investment strategies, even at the cost of lower risk-adjusted investment returns, there should be no legal or regulatory restrictions on doing so. However, securities regulators should closely monitor the investment industry to ensure it provides reliable and up-to-date information about the financial performance of ESG-focused investment products that portfolio managers market to the public.
At the same time, when ESG advocates push for more government-mandated ESG disclosures from companies in Canada, policymakers should be wary of any claims that greater disclosure mandates will improve the financial performance of companies.
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Business
Feds Spent Roughly $1 Billion To Conduct Survey That Could’ve Been Done For $10,000, Musk Says

From the Daily Caller News Foundation
By Hailey Gomez
The Department of Government Efficiency’s (DOGE’s) Elon Musk said Thursday on Fox News that the group found the federal government spent almost $1 billion on a survey that could’ve only cost thousands.
Following President Donald Trump entering office in January, his administration pushed for Musk and DOGE to comb through the government’s spending and identify potential cuts to save taxpayer dollars. On “Special Report with Bret Baier,” the Fox News host sat with Musk and his DOGE team and asked the billionaire what has been the most “astonishing thing” he’s witnessed so far in this process.
“The sheer amount of waste and fraud in the government,” Musk said. “It is astonishing. It’s mind-blowing. We routinely encounter waste of a billion dollars or more, casually.”
“For example, like the simple survey that was literally [a] 10 questions survey. You could do it with SurveyMonkey, [which] would cost about $10,000. The government was being charged almost a billion dollars for that,” Musk added.
WATCH:
Baier could be seen interrupting Musk as he sounded astonished, later asking, “For just a survey?”
Musk responded and said the survey was essentially pointless as it had no “feedback loop.”
“A billion dollars for a simple online survey — ‘Do you like the National Park?,’ and then there appeared to be no feedback loop for what would be done with that survey,” Musk said. “So the survey would just go into nothing. It was insane.”
In February, Democrats’ opposition to Musk’s and DOGE’s place in the Trump administration began to ramp up after the billionaire announced during an X discussion that he and the president had agreed to upend the U.S. Agency for International Development (USAID). Musk warned the agency was wasting billions of taxpayer dollars.
Some of the programs funded through USAID had not only attempted to advance a radical leftist agenda worldwide, but some had a high risk of landing in the Taliban’s hands and also aiding an organization linked to the Wuhan Institute of Virology.
Baier told Musk how he and DOGE technically had 130 days as a “special government employee,” asking if he believes he will be able to complete his task in the time frame allotted.
“I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that time frame,” Musk said.
“We are cutting the waste and fraud in real time. So every day like that passes, our goal is to reduce the waste and fraud by $4 billion a day, every day, seven days a week. So far we are succeeding,” Musk added.
Business
Trump Reportedly Shuts Off Flow Of Taxpayer Dollars Into World Trade Organization

From the Daily Caller News Foundation
By Thomas English
The Trump administration has reportedly suspended financial contributions to the World Trade Organization (WTO) as of Thursday.
The decision comes as part of a broader shift by President Donald Trump to distance the U.S. from international institutions perceived to undermine American sovereignty or misallocate taxpayer dollars. U.S. funding for both 2024 and 2025 has been halted, amounting to roughly 11% of the WTO’s annual operating budget, with the organization’s total 2024 budget amounting to roughly $232 million, according to Reuters.
“Why is it that China, for decades, and with a population much bigger than ours, is paying a tiny fraction of [dollars] to The World Health Organization, The United Nations and, worst of all, The World Trade Organization, where they are considered a so-called ‘developing country’ and are therefore given massive advantages over The United States, and everyone else?” Trump wrote in May 2020.
The president has long criticized the WTO for what he sees as judicial overreach and systemic bias against the U.S. in trade disputes. Trump previously paralyzed the organization’s top appeals body in 2019 by blocking judicial appointments, rendering the WTO’s core dispute resolution mechanism largely inoperative.
But a major sticking point continues to be China’s continued classification as a “developing country” at the WTO — a designation that entitles Beijing to a host of special trade and financial privileges. Despite being the world’s second-largest economy, China receives extended compliance timelines, reduced dues and billions in World Bank loans usually reserved for poorer nations.
The Wilson Center, an international affairs-oriented think tank, previously slammed the status as an outdated loophole benefitting an economic superpower at the expense of developed democracies. The Trump administration echoed this criticism behind closed doors during WTO budget meetings in early March, according to Reuters.
The U.S. is reportedly not withdrawing from the WTO outright, but the funding freeze is likely to trigger diplomatic and economic groaning. WTO rules allow for punitive measures against non-paying member states, though the body’s weakened legal apparatus may limit enforcement capacity.
Trump has already withdrawn from the World Health Organization, slashed funds to the United Nations and signaled a potential exit from other global bodies he deems “unfair” to U.S. interests.
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