Sustainable Switch: EU election result could hamper climate action
Partner and chair of Herrick's Corporate Department, Morris DeFeo, was quoted in the Reuters Sustainable Switch Newsletter on the pushback on ESG initiatives and how this movement will impact ongoing corporate ESG pushes and sustainable investments.
In the newsletter, Morris noted:
“ESG matters, like everything, have become politically charged, and in this environment polarizing.
Lawsuits and regulatory action—whether seen as promoting or limiting ESG investments—are going to be a factor as they always are.
It’s important to note that some of these suits and regulatory efforts, including for example by the U.S. Securities Exchange Commission (SEC), center on the accuracy of disclosures relating to a company’s or fund’s ESG investments, practices or consequences, rather than on the merits of ESG-related efforts.
Many market participants are strongly committed to seeing capital invested in favor of important environmental and social goals and are willing to accept tradeoffs in the amount or timing of economic returns.
As long as financial and strategic investors see the prospect for good returns on ESG-related investments, capital will continue to flow into investment entities and operating companies that are focused on ESG-related matters, including renewable energy solutions and other technologies.”
Read the full newsletter here. Access may require a subscription.