Major U.S. investment firms such as BlackRock, State Street, and JP Morgan Chase are retracting their support from the Climate Action 100+ initiative. This move, influenced by criticism from Republican politicians, signifies a shift away from binding commitments to net-zero greenhouse gas emissions. The firms faced allegations of contravening antitrust laws and failing to fulfill fiduciary duties due to their “environmental, social, and governance” (ESG) focused investments. This has led to a debate over the true profitability of ESG initiatives and has resulted in several states divesting from these institutions, challenging the intersection of investment strategies and environmental responsibility.
Should ESG (environmental, social, and governance) be the primary focus of investment firms?