ESG Movement Faces Mounting Pushback
Asset managers, banks and insurers have been pushing a far-left environmental, social and governance (ESG) agenda, leading to growing concerns among critics who argue these institutions are using their market power to influence company policies in line with their political beliefs.
Will Hild, executive director of Consumers’ Research, recently spoke about the influence of large financial institutions such as BlackRock, State Street and Vanguard, which have led the charge in the ESG movement. In a conversation with Mike Slater, host of Breitbart News Daily, Hild explained how these asset managers have “hoovered up” state, local, and federal pension plans and are using these assets to push their political agenda.
The CEO of JPMorgan Chase, Jamie Dimon, expressed frustration over the financial industry's obsession with ESG, saying the largest threat to mankind is "nuclear proliferation, not climate." pic.twitter.com/G6Gw0SiWEd
— Will Hild (@WillHild) October 26, 2023
Hild pointed to BlackRock CEO Larry Fink as an example of how asset managers use their influence to push companies toward adopting carbon-neutral policies. He said that Fink uses his position to encourage companies they invest in to go carbon neutral by 2050.
Large banks such as Bank of America are also using their leverage to push for carbon-neutral targets, according to Hild. He said that these banks are telling companies, “Listen, if you want a loan from our bank, we’ll give it to you only on the condition that you agree to these net-zero emission targets.”
Insurers have been pushing companies to adopt leftist policies to receive insurance policies. However, some have backed off after facing pushback from state attorneys general, Hild noted.
The ESG movement has been scrutinized recently, as more funds have closed in 2023 than in the last few years combined. Bloomberg reported in September that big investors increasingly see ESG investing as an underperforming fad. This sentiment is reflected in the performance of ESG funds, which lost billions in the third quarter of 2023. According to Morningstar, investment funds focused on sustainability goals lost $2.7 billion during this period.
Hild has a clear message for everyday Americans about the dangers of the ESG movement. “ESG is when the financial services industry uses their market power to push through environmental and social policy that they could not get passed through the ballot box,” he said.
The growing pushback against the ESG movement reflects a broader debate over the role of financial institutions in shaping company policies. Critics argue that these institutions are overstepping their bounds and using their market power to push their political beliefs onto companies, ultimately influencing the country’s direction. As the debate continues, it will be essential to keep an eye on how the ESG movement evolves and the impact it has on the business world and society at large.