Rick Rule: The Moral Crisis of ESG Imposition on Mining Companies
Tom welcomes back the legendary investor Rick Rule to discuss ESG and the mining industry.
Rick Rule argues that ESG (Environmental, Social & Governance) should be understood in an entirely different way than proposed by politicians – as technology has made it possible to lift up the lower third of mankind materially speaking. The billionaires flying into Davos shouldn’t have the right to tell others what not to do; free-market forces are better solutions for these problems, rather than imposing regulations or central planning on individuals as suggested by “big thinkers” like Justin Trudeau. Rule suggests Canada’s refusal to sell natural gas as hypocritical in a world becoming more reliant on energy sources like coal.
As societies become more wealthy, the willingness to pay for improvements like the environment and habitat improvements increases. He notes that without the use of modern fertilizers, we would need twice the arable land to merely survive. For much of humanity, food would become scarcer and or unaffordable. India is doing a lot of research into growing more food in a smaller area, and they are now a net food exporter. We should use every available technology to steward the land and the well-being of humanity.
Solutions already exist and do not need to be imposed by central planners. The success of Central Planners is highly questionable. Socialists have accomplished some amazing, albeit negative things.
Talking Points From This Episode
- Environmental concerns should be addressed through technology, free-market forces & individual solutions rather than regulations or top-down approaches proposed by “big thinkers”.
- Canada’s refusal to sell natural gas, hypocritical in a world becoming more reliant on energy sources like coal.
- Food production can be improved through technology, research, and modern fertilizers.
Time Stamp References:
0:00 – Introduction
1:30 – Rick’s ‘E’SG Position
14:08 – Social-Ist in ESG
17:44 – Governance & Hubris
20:42 – Alternative Energy
24:54 – Governance & Diversity
30:11 – Discussing ESG
30:52 – Efficient Systems?
34:07 – Opposing Ideas & Energy
37:15 – Big Thinkers & Cabals
44:00 – SEC & ESG Guidelines
47:05 – Free Markets & Coercion
48:00 – Biases & Understanding
49:38 – Rule Symposium & Wrap Up
Rick Rule has dedicated his entire adult life to many aspects of natural resources securities investing. Besides the knowledge and experience gained in a long and focused career, he has a global network of contacts in the natural resources and finance sectors.
Mr. Rule is a frequent speaker at industry conferences and is regularly interviewed for radio, television, print, and online media outlets concerning natural resources investment and industry topics. Prominent natural resources-oriented newsletters and advisories frequently quote him. Mr. Rule and his team have expertise in many resource sectors, including agriculture, alternative energy, forestry, oil and gas, mining, and water.
Mr. Rule is particularly active in private placement markets, having originated in hundreds of debt and equity transactions with private, pre-public, and public companies.