Efforts to prohibit financial institutions from considering environmental, social, and governance criteria reflect a fundamental misunderstanding of free-market capitalism on the part of its self-proclaimed defenders. If private investors and companies want to pursue ESG goals, it is not politicians' place to interfere.
CAMBRIDGE – When it burst into the mainstream several years ago, the sustainable investment movement met relatively little resistance as it sought to persuade managers and shareholders to shift their focus from short-term profits toward environmental, social, and governance (ESG) goals. Lately, however, a counter-movement seeking to prohibit financial institutions from following ESG guidelines has been gaining steam in the United States.
CAMBRIDGE – When it burst into the mainstream several years ago, the sustainable investment movement met relatively little resistance as it sought to persuade managers and shareholders to shift their focus from short-term profits toward environmental, social, and governance (ESG) goals. Lately, however, a counter-movement seeking to prohibit financial institutions from following ESG guidelines has been gaining steam in the United States.