It’s Climate Week in New York City and the financial capital is responding to more ESG backlash. While the acronym ESG stands for
“environmental, social, and governance,” what it means depends on who you ask.
Earlier this year, to take one example, the name of investment manager Federated Hermes appeared on the website of the State Financial Officers’ Foundation as a “sponsor,” alongside oil-industry stalwarts Wells Fargo, JP Morgan and Fidelity Investments, according to the news organization Responsible Investor. The foundation is a conservative organization leading an anti-ESG movement. At the time, it was conducting a review of firms that are said to boycott the fossil fuels industry. On Friday, Federated Hermes said that it will no longer sponsor the SFOF. A statement on the foundation’s website now says it does not discuss or disclose its donors.
The backlash tussle is often attributed to American culture wars, but there are powerful, more nuanced forces at work. ESG wasn’t born in the U.S., and it wasn’t intended as a values-based decision-making process.
Published September 20, 2022 — Continue reading on Barron’s.com: https://www.barrons.com/articles/esg-investing-climate-un-environment-51663620697