InCorporatED

Executive Summary

Corporate America has leveraged ESG to turn K-12 students into activists.

In the summer of 2020, the University  of Washington, using $1,336,657 in funding from the National Science Foundation, ran a professional development for high school physics teachers. The report, titled “Redefining Energy Justice in Physics Classrooms,” focused on training teachers to integrate discussions around “energy justice” into existing physics curriculum. The authors stated the “original purpose of the energy concept was to improve factories and steamships in the British Industrial Revolution and advance capitalism and colonialism.” They also claimed the traditional method of teaching upholds capitalism and the use of fossil fuels and is responsible for “energy injustices” and “environmental racism.” Upon completion of the training, participants concluded that equity, social justice, and physics are inseparable because “there are inequities and injustices present in physics.”

K-12 classrooms are being used by corporations to advance political ideologies such as critical race theory, queer theory, and environmental racism. These destructive ideas are foundational to new policies being implemented in schools. Examples include students being segregated by race, gender transitions without parental consent, and using discussions on the environment to shame white students.

In 2021, Parents Defending Education released the Consultant Report Card, highlighting how much money education consultants were being paid to introduce controversial ideologies such as critical race theory into schools. Our Cracked Foundations report exposed how philanthropic foundations are using large grants to advance woke ideology through K-12 classrooms. In the same vein, corporations are seizing the opportunity to use environmental, social, and governance (ESG) standards to further the encroachment of critical race theory, queer theory, and climate activism into school systems.

As companies adopt ESG standards, the discussion about how to integrate education into an organization’s ESG focus has become increasingly robust. Businesses are seeking ways to boost their own ESG corporate rating, which benefits from investment in K-12 education. Companies also view involvement in education as a long-term net benefit by ensuring that future employees are ESG- and UN Sustainable Development Goals-oriented. They also see it as an opportunity to generate revenue.

ESG is a set of operating principles that prioritizes a stakeholder-centric, public-private partnership, approach to solving alleged systemic inequities and the “climate crisis.” It determines the value structure around an organization’s or school district’s commitment to advancing “sustainability” and social justice issues in place of a traditional academics focus.

Additionally, investment firms are advocating that school districts adopt ESG standards and policies to boost interest from investors when it comes to bond initiatives. Municipal bonds are considered “low risk investments,” and are a tax-free way for a district to “spread debt repayment over an extended period.” The more ESG-compliant the policies, lessons, and activities a school district implements, the better it looks to banks and firms that service municipal bonds.

Source: Environmental, Social, & Governance – What It Is & Why It’s Important To School Districts (oasbo-ohio.org)

Key Takeaways:

  • Environmental: focuses on advancing ideas such as environmental racism, net zero and climate crisis policies
  • Social: focuses on advancing ideas such as critical race theory, queer theory, and equity policies
  • Governance: focuses on the policies put in place to realize and advance the environmental and social factors

What is ESG?

ESG stands for Environmental, Social, Governance – and each of the three focuses breaks down issues by category, such as how a school district is teaching and tackling climate change (environmental), a district’s diversity, equity, and inclusion efforts (social), and hiring practices and bid allocations toward “marginalized groups” (governance).

Environmental factors indicate how an entity operates in relation to topics such as climate, energy consumption, pollution, and other environmental risks. Social incorporates values and relationships of those people involved in the organization. Factors of social include racial justice, diversity and inclusion efforts, and the application of equity policies.

According to the World Economic Forum, governance includes factors such as “corporate structure, board composition, business ethics and anti-corruption.” The WEF also adds that besides governance being “one-third of the ESG equation, the G is also foundational to the realization of both the E and S.

Environmental, Social, and Governance in K-12 Schools

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