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If you’re an environmental, social, and governance (ESG) investor and thinking about buying Pinterest (NYSE:PINS) and PINS stock, the latest news is a big positive to differentiate itself from other digital platforms. The company announced its official climate misinformation policy on Apr. 6. Pinterest claims that it is the only major digital platform to have official guidelines regarding climate change misinformation. “Pinterest believes in cultivating a space that’s trusted and truthful for those using our platform. This bold move is an expansion of our broader misinformation guidelines, which we first developed in 2017 to address public health misinformation, and have since updated to address new and emerging issues as they come to the forefront,” the company’s press release stated. Down more than 32% year-to-date, this move by Pinterest is the right one. It could be the tonic it needs to turn around its share price.
Social media platforms have become the breeding ground of misinformation in recent years. With 431 million active users worldwide, Pinterest is wise to continue differentiating itself from its major peers. Being honest about climate change should go a long way in gaining the trust of its current and future users. As part of its new policy, it is banning ads that spread misinformation about climate change. While this theoretically could cut into its ad revenue in the near term, the gains it should make from so-called “green” companies will more than compensate for any losses.
The company is partnering on this initiative with the Conscious Advertising Network and the Climate Disinformation Coalition. Just as former President Donald Trump’s Truth Social seeks to allow free speech, Pinterest is implementing this policy to ensure climate change gets accurate representation on its platform. The Co-Chair of the Conscious Advertising Network, Jake Dubbins, has called on other tech platforms to join Pinterest in this endeavor.
According to the Principles for Responsible Investment, “Climate change is the highest priority ESG issue facing investors.” The move by Pinterest is a concrete example of how social media companies can make a positive difference in the planet’s future. By having zero tolerance for the spreading of climate change misinformation, Pinterest is saying to ESG investors that it cares about the message it sends out on this front. If you own PINS stock, the latest news is a reason for optimism. Pinterest is on the right side of this fundamental issue.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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