{"id":3819,"date":"2022-11-11T15:33:52","date_gmt":"2022-11-11T15:33:52","guid":{"rendered":"https:\/\/www.rubinwealthadvisors.com\/rubinreport\/?p=3819"},"modified":"2025-05-20T13:18:07","modified_gmt":"2025-05-20T13:18:07","slug":"esg-pushback-has-come","status":"publish","type":"post","link":"https:\/\/www.rubinwealthadvisors.com\/rubinreport\/esg-pushback-has-come\/","title":{"rendered":"The pushback against ESG has come."},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"ESG\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The ESG trend was once the rage in investing but is now under fire. Politicians and regulators are interested in the ESG label. Some want it to be more clearly defined, while others want to ban it altogether.<\/span><\/p>

Not too long ago, ESG was seen as the way of the future when it came to investing. From $70 billion to $296 billion, sustainable and exchange-traded funds have tripled in the U.S. since 2017.<\/span><\/p>

In 2021, ESG funds held $2.7T around the world. But, again, BlackRock, the most significant asset manager in the world, has set the pace.<\/span><\/p>

But now the pushback is here. Politicians and investors against ESG say it hurts local businesses, doesn’t give good returns, isn’t transparent, and undermines democracy. The SEC is also looking at ESG funds to stop “greenwashing.”<\/span><\/p>

Republicans are at the front of the pushback. They say that CEOs of companies are forced to make decisions that go against what they think is best to keep the ESG label.<\/span><\/p>

They say the label started because blue-zone states like California and New York followed ESG guidelines when investing most of their pension funds. So maybe it’s time for red-zone states to fight back, say Republicans.<\/span><\/p>

So far this year, 17 states run by the Republican Party have introduced at least 44 bills to punish companies that adopt ESG-friendly policies, especially financial companies that offer ESG funds.<\/span><\/p>

Recently, Florida Gov. Ron DeSantis told the state pension fund managers that they couldn’t use ESG criteria to choose investments.<\/span><\/p>

Glenn Hegar<\/a>, the comptroller of Texas, put ten major financial firms, like BlackRock and Credit Suisse, on a “blocklist” for “boycotting energy companies.” Likewise, West Virginia broke ties with some companies, saying their environmental, social, and governance (ESG) efforts hurt the coal industry.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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