Commentary After one peels back the layers of sugarcoating, there are two thorny truths about environmental, social, and governance (ESG) criteria. (1) There’s not even close to agreement on how to grade firms, and there never will be. (2) Ideologically constrained portfolios don’t generate superior returns relative to unconstrained portfolios. ESG has become a virtue-signaling buzzword that distracts from legitimate fundamental analysis and allocative efficiency. The ruse—since it rests on subjective assessments rather than concrete outcomes—muddies fiduciary duty and lessens accountability for portfolio managers.  Perhaps worse, ESG has become a tool for progressive ideologues to guilt-trip, dominate, and hustle private companies. In the era of social media and trending hashtags, the specter of finger pointing, mass hysteria, and consumer boycotts is ever present. Risk-averse firms wish to avoid confrontations, and many chief executives are falling over themselves to embrace ESG and preempt accusations from the woke brigade. Ideologues—as they have …