ESG Investing Wars Hit Nerve With Public
Partner and chair of Herrick's Corporate Department, Morris DeFeo, spoke to Bloomberg Law about asset manager BlackRock and the ongoing discussion, voiced by politicians and the public nationwide, about concerns with ESG investing.
The article notes that BlackRock has found itself on the defense since Florida announced that it would pull assets from the money manager noting the criticism that "ESG investing sacrifices individuals' investing returns" and the rising public criticism of ESG investing. While some state treasurers are going so far as to call for the resignation of BlackRock's CEO, others are taking a more measured approach before deciding to pull funds over ESG investing concerns. The article highlighted that institutional investors are incorporating ESG factors into their investment decisions at the lowest rate since 2017.
"It’s likely that economic pressures and the potential US recession are stoking public concerns about ESG," noted DeFeo.
For some, it’s more difficult to see the potential benefits of ESG when “interest rates are going up, and everything costs more, your ability to provide for your family is in jeopardy,” Morris said. “You’ll naturally have a lot less time and enthusiasm to focus on things that in your view are not immediate.”
Read the full article in Bloomberg Law here. Access may require a subscription.