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Is pro-Trump Blackstone CEO's ESG commitment contradictory?
Participants listen to Blackstone Group Chairman Stephen Schwarzman's pre-recorded speech during the Institute for Global Economics-KB Financial Group International Conference at Westin Chosun Hotel in Seoul, Monday. / Yonhap
By Park Jae-hyuk
Former UN secretary-general lauds Biden's plan for climate change
By Park Jae-hyuk
Blackstone Group Chairman Stephen Schwarzman's “righteous” speech on his company's commitment to environmental, social and governance (ESG) principles may have moved the hearts of many participants in the Institute for Global Economics-KB Financial Group International Conference in Seoul, Monday.
But at the same time, his remarks may have been considered “self-contradictory” by those who are aware that he donated a very large amount of money for the victory of U.S. President Donald Trump, who withdrew the world's largest economy from the Paris Agreement.
In the conference titled “ESG Global Summit: The Road to Resilient Economy and Sustainable Finance,” the world's largest private equity firm's chief executive introduced his company's pledge to invest in businesses that can reduce carbon emissions by more than 15 percent.
Emphasizing environmental issues have become more important for investors after the COVID-19 pandemic and various natural disasters including wildfires and typhoons, he said his company's business model has improved its profitability.
Known as Trump's long-time friend and unofficial economic adviser, however, Schwarzman has served as Wall Street's top donor to Republican super PACs. He has spent more than $27 million to support Trump, despite his anti-environmental policies.
Perhaps for these reasons, he barely expressed any hopes for Joe Biden in his pre-recorded speech, saying Biden's projected victory will have a limited impact on U.S. policy toward China, and Republican control of the Congress in a Democrat administration will be better for his country.
This was in stark contrast to the perspectives of other speakers at the conference, such as former United Nations Secretary-General Ban Ki-moon and Stanford University Professor Francis Fukuyama.
Ban, who is leading the National Council on Climate and Air Quality, did not hesitate to level criticism at the outgoing U.S. president in a congratulatory speech.
Describing Trump's decision on the Paris Agreement as “short-sighted,” he said the Biden administration will be more helpful for the global environment, given that the president-elect has unveiled a plan to rejoin the international accord aimed at halting global temperature rises.
Fukuyama, the author of “The End of History and the Last Man,” was also favorable to Biden's stance on climate risks and said the result of the U.S. presidential election has signaled the collapse of populism worldwide.
In the following sessions, global experts including former World Bank President Robert Zoellick, MSCI Chairman Henry Fernandez, BlackRock Vice Chairman Philipp Hildebrand and Institute of International Finance President Tim Adams spoke on their thoughts about ESG. They forecast that ESG principles will emerge as key factors for businesses in their making of decisions on investments.