What does Warren Buffett think of ESG?

Warren Buffett has been consistently sceptical of ESG as an investment framework. His position is that fiduciary duty means maximising shareholder returns on economic fundamentals, not allocating capital according to sustainability labels or ESG scores.

He has criticised ESG fund managers for advancing political views with investors' money, arguing this conflicts with their obligation to deliver returns. Berkshire Hathaway evaluates investments on long-term economic value, not ratings.

Buffett acknowledges climate change as a real risk but opposes mandating ESG criteria in investment decisions at the expense of financial performance.

The counterargument is straightforward. A properly scoped ESG programme does not compromise returns - it reduces energy costs, surfaces supply chain risk and strengthens the organisation's position with lenders and customers.