Whither the future of the ESG movement?
The ESG movement faces significant challenges as major fund managers retreat from supporting corporate sustainability initiatives. This shift is largely influenced by political opposition in the U.S. and legal scrutiny surrounding ESG practices. Advocates for sustainability may need to realign their strategies to engage more effectively with corporate management and build stronger social movements.
- ▪Investor support for corporate sustainability initiatives has been derailed due to strong opposition against ESG investing in the U.S.
- ▪Major fund managers like BlackRock and Vanguard have distanced themselves from asserting the relevance of ESG factors to investor concerns.
- ▪A recent settlement involving Vanguard highlights the legal challenges faced by asset managers in promoting sustainability initiatives.
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Open this photo in gallery:An old oil pump jack stands in a cotton field with wind turbines near Southland, Tex. on Oct. 8, 2024.Sandy Carson/The Globe and MailShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountEdward Waitzer is a senior fellow at the C.D. Howe Institute and a former chair of the Ontario Securities Commission.Investor support for corporate sustainability initiatives has been derailed. In the face of strong ideology against Environment, Social and Governance, or ESG, investing in the United States, major fund managers such as BlackRock, Inc. and the Vanguard Group, Inc. have backed away from asserting that ESG factors are responsive to investor concerns and relevant to long-term, systemic wealth creation.
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