ESG Funds Under Attack: Why Republicans Are Targeting Socially Responsible Investing

Republicans are on a “crusade” against responsible investing, says Andrew Behar, CEO of the nonprofit group As You Sow that promotes corporate responsibility through shareholder advocacy. His group was subpoenaed to testify before the House Judiciary Committee this week as Republicans probe whether investments that take into account environmental, social and governance (ESG) concerns violate antitrust laws. Republicans have introduced bills in dozens of states across the U.S. to limit state bodies from working with banks and other financial firms that take things like climate change into consideration in their investments. ESG is “a framework for assessing risk,” Behar says. “Basic good business says you want to assess and address risk, and that’s what they’re trying to suppress.”