There's now little doubt ESG has gone mainstream.
Even the creator of the "Dilbert" cartoon is taking potshots at an investment strategy that focuses on risks tied to the environment, social and corporate governance. In a series of illustrations published last week, author
Adams is known for his strong opinions, and his position on ESG matches the political rhetoric coming from the governors of Florida and Texas, as well as other Republican leaders. They say they want to obliterate the investment philosophy from the American corporate landscape. Adams is onboard: In
Adams is a cartoonist. Politicians like Florida's Ron DeSantis arguably present a more clear and present danger to ESG. Which is probably why pension giants representing the interests of millions of workers have turned their attention to him and other right-wing American politicians.
Efforts to attack ESG based on an assessment of short-term returns are "ridiculous" and "meaningless," said Matti Leppala, chief executive of
The fact is that ESG is now so hardwired into financial markets that effectuating wholesale abandonment of the principles behind it — especially given intensifying crises in the environmental and societal spheres — seems like a stretch (at least in the near term).
Sustainability benchmarks are taking over companies and funds that hold their stock. It's how an Hermès Birkin bag can get tagged as good for democracy.
ESG-related assets are likely to exceed $50 trillion by 2025, when they will represent more than one third of the projected $140.5 trillion in total global assets under management, analysts at Bloomberg Intelligence estimate. Additionally, more than 90% of S&P 500 companies now publish ESG reports, according to
But these realities aren't stopping Republicans from focusing on what they see as some of the underlying hypocrisies of ESG. In some ways, the criticisms leveled by Adams and his fictional characters have come to be emblematic of that position.
"Dilbert" is a syndicated
Seventy-four percent of plan participants would contribute more to their retirement fund if their plans had a more value-based approach, Schroders found.
Criticisms like that — centered on the epidemic of greenwashing that's besmirched ESG's reputation — are certainly having an impact on some of the investing strategy's biggest adherents (though perhaps not directly because of the cartoons).
"What we want to convey is how important it is for investors like us to really think long term and continue to push companies in the right direction,"
