
Strategic Intelligence: The Anti-ESG Movement
Description
Strategic Intelligence: The Anti-ESG Movement
Summary
The anti-ESG movement refers to a coalition of actors who, for various reasons, oppose ESG investment, regulations, and company policies. The US is the epicenter of this movement, with some federal politicians, state lawmakers, fossil fuel industry lobbyists, business groups, and segments of the public all trying to slow or reverse the adoption of ESG policies. These anti-ESG efforts focus on eradicating climate action and diversity, equity, and inclusion (DEI) practices.
Key Highlights
Summary
The anti-ESG movement refers to a coalition of actors who, for various reasons, oppose ESG investment, regulations, and company policies. The US is the epicenter of this movement, with some federal politicians, state lawmakers, fossil fuel industry lobbyists, business groups, and segments of the public all trying to slow or reverse the adoption of ESG policies. These anti-ESG efforts focus on eradicating climate action and diversity, equity, and inclusion (DEI) practices.
Key Highlights
- Anti-ESG in the US first targeted financial services, then the energy sector. It will ultimately impact companies across all industries, including educational institutions and other entities previously thought to be untouchable.
- The EU’s efforts to simplify its regulatory landscape have seen it slide towards anti-ESG, while the growth of right-wing populism worldwide is bolstering climate skepticism.
- Companies across all sectors are muddling through an increasingly hostile ESG landscape, taking very different approaches.
- The anti-ESG movement started gaining traction in 2021, when the Texas state legislature passed a bill banning financial institutions from boycotting fossil fuel companies. Since then, financial services companies (like banks, asset managers, and pension funds) have been the primary targets of anti-ESG efforts. They have been targeted by other anti-boycott laws, as well as lawsuits claiming that ESG investing violates their obligation to act in the best financial interests of their clients, known as their fiduciary duty.
- Since President Trump’s re-election in November 2024, the efforts of the anti-ESG movement have ratcheted up, and all companies (not just those in the financial services industry) lie within the movement’s scope. Trump has unravelled much of the previous administration’s climate action policies, passed executive orders banning ESG investing, and taken aim at DEI policies.
- Companies must develop a comprehensive strategy for how to respond to the anti-ESG movement. To create such a strategy, they should carefully consider the profile of risks to which potential courses of action will expose them. This report will help companies understand these risk profiles. It also includes GlobalData's dos and don'ts for dealing with the anti-ESG movement.
Table of Contents
49 Pages
- Executive Summary
- What is the Anti-ESG Movement?
- The US is the Epicenter of the Anti-ESG Movement
- ESG Fractures Elsewhere in the World
- Corporate Reactions to the Anti-ESG Movement
- Navigating the Anti-ESG Movement
- Glossary
- Further Reading
- Thematic Research Methodology
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