The ESG Initiative at the Wharton School
Anti ‘woke’ ESG policies are already costing taxpayers millions
Outlet: Fast Company
Vit Henisz on the new and disturbing trend of investing becoming politicized and what we can expect going forward.
Republican politicians are coming down hard on ESG investing, even though their constituents are the ones who pay the price.
Texas was the first state to take legislative action against ESG, with a 2021 bill that prohibits municipalities from contracting with banks that have ESG policies, leading major banks, including JP Morgan and Goldman Sachs, to back out. Research showed that that bill has cost taxpayers between $300 and $530 million over six months. If other states follow, their Republican leaders could be racking up billions of dollars that taxpayers end up on the hook for.