The backlash against ESG investment is on. To some Wall Street CEOs and trade groups, shareholders asking them to disclose data about things like the risks climate change poses to their business operations, or the human rights practices of their suppliers, is just meddling with their ability to make a profit.
For several years now they have carried out a sophisticated propaganda campaign against ESG in the media and the halls of power, pumping out a steady stream of op-eds and “studies” designed to erode public confidence in the wisdom of ESG.
Right-wing politicians have even adopted it as a culture-war issue, calling ESG “woke capitalism.” This has resulted in a barrage of bills on Capitol Hill and in state houses attempting to make it harder for shareholders to hold the companies they own to higher ethical standards, or for fund managers to even consider ethics in their investment decisions.
In this well-researched article in the 2024 issue of Green America’s magazine Your Green Life, Anya Crittenton debunks five of the most common anti-ESG myths.
MYTH #1: ESG investing is a passing fad and a political football.
TRUTH: It’s tried, true, and here to stay.
TRUTH: ESG investing spans industries.MYTH #3: ESG investing sacrifices portfolio performance.
TRUTH: Numbers don’t lie—ESG investing is a success for portfolios.MYTH #4: Participating in ESG investing means eliminating entire sectors and screening only “sin” stocks.
TRUTH: ESG includes different sectors.MYTH #5: ESG information isn’t reliable or accurate.
TRUTH: As with any investing, new information is always being learned, but ESG is solid.Read the article for Crittenton’s full explanation of the facts that counter each of these pernicious myths.