U.S. Finance Faces ESG Backlash, More to Come In 2023
A movement by financial firms and activists to challenge companies over their efforts on climate change and social inequality faced organised and growing push-back in 2022, led by Republican U.S. politicians.
Focusing on environmental, social or governance-related issues, ESG in industry parlance, could hit returns to investors, critics said.
A rise in oil prices this year bolstered their case by hurting the performance of many ESG funds that had moved away from energy stocks, responsible for producing a large share of climate-damaging carbon emissions.
Despite that, the list of financial firms signing up to industry coalitions aiming to help companies make the shift to a low-carbon economy lengthened as scientists warned time was running out to limit global warming.
Photo courtesy of Bud Helisson.