Why are people against ESG?

Opposition to ESG falls into three categories - financial concerns, political objections and distrust of the metrics.

The financial argument is that ESG investing prioritises social goals over fiduciary duty, compromising returns for pension holders and shareholders.

The political objection, strongest in the US, frames ESG as regulatory overreach that raises energy costs and restricts business freedom.

The metrics problem is real. Different rating agencies produce conflicting scores for the same company and high-profile greenwashing cases have eroded trust.

Reporting fragmentation across jurisdictions adds compliance cost without proportional value.

None of this means the underlying risks disappear. Climate exposure, supply chain disruption and governance failure carry financial consequences regardless of what label they sit under. The valid criticism is about how ESG is measured, not whether it matters.