After the pandemic, ESG emerged as the latest front in the culture wars. Critics in conservative-leaning states such as Texas decried responsible investing as “woke capital” and passed legislation to bar public pension funds from doing business with asset managers with ESG programs. At the same time, activists criticized ESG investors for being too soft on pressing corporations to do more to address global warming, inequality, and other issues. And all of this came on top of long-standing worries that responsible investing is susceptible to marketing gambits, or “greenwashing,” that undermines its credibility. It would be unwise to wave off these complaints as just noise. In this chapter, I unpack what responsible investors can learn much constructive criticism.

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Blowback: Critics Assail Responsible Investing from All Sides—Are They Right?

  • Amy O’Brien

摘要

After the pandemic, ESG emerged as the latest front in the culture wars. Critics in conservative-leaning states such as Texas decried responsible investing as “woke capital” and passed legislation to bar public pension funds from doing business with asset managers with ESG programs. At the same time, activists criticized ESG investors for being too soft on pressing corporations to do more to address global warming, inequality, and other issues. And all of this came on top of long-standing worries that responsible investing is susceptible to marketing gambits, or “greenwashing,” that undermines its credibility. It would be unwise to wave off these complaints as just noise. In this chapter, I unpack what responsible investors can learn much constructive criticism.