On-demand webinar: The Anti-ESG Movement

An anti-ESG backlash is rapidly taking shape in the United States. Members of the movement see ESG policies as creating an unfair burden on consumers and an illegitimate interference in the political system. In 2023 three prominent lawsuits were filed against the US government and investment companies for breach of fiduciary duties relating to the decisions to divest from fossil fuel investments in an effort to combat climate change.

The movement has made its presence felt overseas. 23 US State Attorneys General wrote a letter threatening anti-trust proceedings against insurer parties to the Net Zero Insurance Alliance, which resulted in many insurers withdrawing their support.  US Republicans have targeted similar alliances, such as the Net Zero Asset Owner Alliance, and Net Zero Banking Alliance and the Net Zero Asset Managers Initiative.   

The anti-ESG movement is a powerful illustration that the green energy transition is not a smooth process. The risk of litigation derives not only from those in favour of a faster transition, but also those who wish to slow or prevent the transition.

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