Millennial, Gen-Z Investors Turning Away from 'Woke Capitalism'

Research shows that younger investors are turning their backs on firms that tout trendy environmental, social, and governance (ESG) efforts — which is often mocked as ‘woke capitalism.’ …

Prof David Larcker, of Stanford Graduate School of Business, who led the research, said support for ESG values among younger investors fell by ‘double-digit percentages’ between 2022 and 2023.

Previously, young investors said they were ‘very concerned about environmental and social issues’ and wanted their fund managers to push ‘for change, even if it meant a loss of personal wealth,’ said Larcker.

That ‘sentiment has changed dramatically,’ he added

[I think they have discovered that ‘woke capitalism’ and ‘ESG’ are euphemisms for “expensive virtue signaling”. If they owned Disney stock, the lesson may really have sunk into the psyche of this generation. — Ed]