Companies feel the squeeze on ESG, DEI

Partner and chair of Herrick's Corporate Department, Morris DeFeo, was quoted in Politico Pro in an article discussing the current state of sustainability and diversity initiatives at companies across the country. Several companies have scaled back on programs that they embraced only a few years ago in light of political pressures and the struggles that business have faced in making the economic case for environmental, social and governance principles and diversity, equity and inclusion programs. 

While Morris expressed concern about the extent to which some companies tied themselves to ESG "because it was 'politically fashionable' and 'overstated its value to investors,' he said there's still legitimate money to be made in the energy transition." 

"Does it mean that now all these investors are suddenly going to wake up and decide that coal is the right place to put their money, as opposed to natural gas or nuclear or wind or solar? I don't necessarily see that," said Morris. 

The article notes that while the mood around ESG and DEI continues to shift, much of the actual work will remain.