Why US banks must be clear about the importance of ESG

A Republican push-back against ESG could force banks to choose between red and blue states, in spite of poor outcomes in Texas.

“ESG is dead on arrival in Florida,” said Ron DeSantis, the state’s governor, as his administration last week passed a resolution he insisted would direct the state’s fund managers to make “sound investments on returns, not woke ideology”. Despite his firm rhetoric, DeSantis’s resolution stops short of banning the consideration of environmental, social and governance (ESG) criteria in investment decisions. The move is, however, part of a growing movement of Republican opposition to sustainable investment, and it will likely impact taxpayers and investors alike.