In a recent opinion piece published in Bloomberg, journalist John Authers reflects on the current backlash against ESG, arguing that the principle's real failure lies in its ineffectiveness rather than ideological controversy.
Authers notes that ESG investing is under legal and political attack, with Tennessee's attorney general declaring it "dead" after BlackRock settled accusations of misleading investors about its ESG principles. Separately, a Texas court ruled that American Airlines had acted disloyally by allowing BlackRock to vote proxies with ESG considerations, with Judge Reed O'Connor claiming ESG funds "underperform traditional investments by approximately 10%." However, Authers challenges this assertion, noting that ESG performance varies widely depending on definitions and benchmarks.
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