You Have a Social Credit Score, and You Don’t Even Know It – Opinion

Have you heard of China’s “social credit” system? Yes, most people have. Only totalitarian states would rank their citizens based on “social credit” – right?

The CCP is building a system to keep track of all its members and rank them like cattle in an auction. You can be good or you can be bad.

Be loyal to the party line, and you will get rewarded. You will get punished if you step outside the party line

CCP claims:

“Keeping trust is glorious and breaking trust is disgraceful”  

People who had their social ratings downgraded are subject to punishment.

China’s “National Development and Reform Commission” (NDRC) and Chinese financial institutions like the People’s Bank of China are largely to blame. They monitor you with cameras, spyware, where you go – what you buy and when.

Yeah, that’s Communist China, that’s not going to happen here. Well, Bank of America, Wells Fargo and a dozen other financial institutions say “Hold my copy of 1984.”

ESG, a system that banks such as Citigroup, TD Bank Financial Group and Bank of America love, is a popular choice. ESG stands for Environmental, Social, and Governance.

ESG scoring has been used by banks to assess investments and determine risk. It would be easy to assume that ESG scoring would prevent banks from investing in China. However, the truth is that they tend not to have the same social awareness about China.

If banks want to “judge” investments based on environmental, social, or governance, who are we to complain, but ESG isn’t just used by banks — you have an “ESG” score.

Do you have a bank account Chances are you can find your “ESG” score somewhere on your account.

This isn’t new it’s just been hovering under the radar. According to “Impact Investor” whatever you do, including who you vote for affects your ESG score and soon, that score might make the difference if your bank grants you a loan.

Here’s what Impact Investor says about ESG

“ESG scores take a lot of information into account when it comes to commercial and industrial entities. A similar amount of information is also used on a personal level to build a picture and assess your influence over the world.

ESG scores can be affected by buying guns, alcohol or clothing. Your purchases will not only impact your ESG score, but also who and what they do.

ESG scores are also affected by your political affiliations. Aside from the politics in governance, the party you support and even the person you vote for will make your score go up or down based on that person’s actions, policies, and voting habits.

It Type of car that you drive, how often, and even how many people are in the car when you drive will also come into play when deciding your score.”

Bank Guy

“Gosh Mr. Average Guy, I wish I could give you the loan, but your ESG score is really low. You bought a lot of meat and booze for a Super Bowl party and you’re a registered Republican? Geez, guy. Oh and, I see – last week you bought a gas-powered leaf blower? Woof. Suuuuper bad. Look eat some kale and yogurt for a couple of months and register as a ‘Green Party” member. Come back in 6 months… K?”

Worried?