Politics Comes to ESG Investing

While the past decade has seen a dramatic increase in the incorporation of Environmental, Social and Governance (ESG) standards into investor practices, this momentum has shifted recently in the United States, as some politicians argued that ESG investing practices will both lead to lower financial returns than traditional investing and advance a “left-wing” agenda. The authors discuss the current state of ESG investing and the nature in which political actors have influenced its reception, prevalence, and future utility.