The politics of environmental, social, and governance (ESG) strategies and stakeholder capitalism have become fraught in the United States over the past year.
Lawmakers on the right are denouncing corporate actions as “woke,” while those on the left accuse companies of not doing enough. Many anticipate congressional hearings on corporate and investor positioning on ESG and stakeholder capitalism to intensify over the coming months. CEOs are becoming more circumspect about speaking out on divisive social issues. Some companies are reportedly “green hushing,” and choosing not to speak openly on sustainability goals for fear of being targeted or called out. One executive, as reported by The New York Times, said at the World Economic Forum’s Annual Meeting in Davos recently that he hopes ESG “just goes away.”
