ESG in Mid-2023: Making Sense of the Moment
The backlash against ESG in the United States has been unmistakable in 2023. More than one-third of states have passed anti-ESG laws in 2023, most ESG-related shareholder proposals failed to garner majority support, new lawsuits have been filed challenging companies’ ESG-related activities and decisions, and some companies seem to be distancing themselves from the term “ESG” itself. But despite a heavy stream of opinion pieces, the business case for incorporating non-financial metrics into an evaluation of a company’s risk and opportunity profile (the very crux of ESG efforts) remains clear.
Instead, companies’ on-the-ground approaches to their ESG strategies are evolving in response to recent events. With proxy season complete, the Supreme Court term wrapped, Congress in recess and most state legislatures adjourned, we take stock of the current state of ESG for U.S. companies.