ESG - Ever So Gone

Environmental, Social, and Governance (ESG) investing has seen a sharp decline in the US, impacted by its entanglement with political and cultural conflicts. The initial promise of ESG to foster a clean, sustainable shift in capitalism has largely been abandoned. The term “ESG” itself has been politicized, particularly by right-wing politicians, with Larry Fink of BlackRock stating it has been “weaponized” and should no longer be used. BlackRock has become a target for conservative critics, even labeled in a recent book alongside the Boy Scouts and the Chinese Communist Party as a “decadent” institution. Many supporters of ESG are also disillusioned, seeing it as more of a marketing tactic than a meaningful investment strategy. Several firms, including WisdomTree and Invesco, have faced fines for “greenwashing” their products. Additionally, BlackRock faces allegations in France that some of its “sustainable” funds are still investing in fossil fuels.