More than 30 US states have proposed or implemented legislation in recent years to stop the government and its pension funds from investing in environmental social and governance (ESG) funds. These products integrate ESG issues into their investment strategies, which mainly involve buying stocks but also bonds.
US conservatives claim that ESG has an overly large impact on corporations and the whole economy – hence recent moves to ban the strategy for government investments. But critics in Europe argue that ESG funds are not doing enough to have a positive impact in the real world.
