Skip to main content

Anti-ESG takes a leap across the pond

Presented by :
Oct 31, 2023 View in browser
 
The Long Game header

By Jordan Wolman, Charlie Cooper and Allison Prang

THE BIG IDEA

Vivek Ramaswamy speaks.

Republican presidential candidate Vivek Ramaswamy hyped up the anti-ESG train across the pond. | Kevin Wolf/AP Photo

TEA TIME — Leaders of the U.S. campaign against environmental, social and governance investing descended on London this week looking to spread their “anti-woke” gospel and spur a similar movement on the other side of the Atlantic.

Republican presidential candidate Vivek Ramaswamy and State Financial Officers Foundation CEO Derek Kreifels were among those gathered for the inaugural conference of the newly-formed Alliance for Responsible Citizenship, along with other U.S. conservative luminaries including House Speaker Mike Johnson, former Speaker Kevin McCarthy and Sen. Mike Lee (R-Utah), some of whom appeared virtually.

Kreifels said in an interview that he hopes the gathering of anti-ESG advocates helps nudge folks in the U.K. to “pick up the mantle” and lay the groundwork for a strategy pushing back on this kind of investing.

“Absolutely, this is about sharing what’s working. We’re winning. We’re creating pause in the industry,” Kreifels said in an interview. “There's already a lot of leaders who have already figured this out — that ESG is a losing proposition. This is going to be an opportunity to give voice and cover to those who may have felt like they were on an island believing that.”

The London conference comes at a pivotal moment for U.K. climate and energy policy — one that anti-ESG crusaders see as presenting a path to grow their movement.

U.K. Defense Secretary Grant Shapps warned in September that ESG considerations were undermining investment in the nation’s defense sector at a time of heightened security concerns. That same month, Prime Minister Rishi Sunak rolled back key climate targets ahead of next year’s elections. And in July, the private bank and wealth manager Coutts was accused of pursuing a “woke” capitalist agenda after it decided to close an account belonging to former Brexit campaigner Nigel Farage.

Ramaswamy, who appeared virtually, told the London audience that European companies have suffered financially from not focusing solely on maximizing shareholder returns — and cast the issue as one in which a few corporations undermine democracy by imposing their market power to achieve societal changes not approved by the government.

“My impression is that they are as thirsty for pushback on the ESG movement as here in the United States,” said Will Hild, the head of the Leonard Leo-supported anti-ESG group Consumers’ Research.

If that is the case, it’s not so clear to those on the ground.

Emma Wall, head of investment analytics and research at U.K. financial services firm Hargreaves Lansdown, said that even though the country has seen a recent trend of money being pulled out of ESG funds, it doesn’t yet indicate a backlash. And even as ESG has seeped into politics, “the language is far less inflammatory” than in the U.S.

With U.K. elections looming, the next two years “will be key in identifying whether there has been a backlash as has happened in the U.S. or whether what we are seeing is just that frothy money leaving,” Wall said.

It’s even less clear whether an anti-ESG movement would spread across Europe given the U.K.’s relative isolation from the continent after Brexit. Brussels is on a regulatory tear, going full steam ahead on thorny issues such as green bond issuance and requiring businesses to disclose their climate, biodiversity and water impacts, ensure their supply chains aren’t contributing to deforestation and make more of their packaging recyclable.

Some advocates, like Jason Isaac, founder and CEO of the American Energy Institute and a distinguished fellow at the conservative Texas Public Policy Foundation, concede that the European context offers plenty of hurdles for those hoping for an anti-ESG wave. But Kreifels said he was energized by the audience's enthusiasm, saying he received 30 or 40 private messages after his session from inspired conference attendees hailing from Britain, Poland, Germany and Brazil.

"We're going to continue to foster model policies that will be hopefully seen into legislation," he said. "We'll work with our partners like ALEC and the Heritage Foundation and other friends to continue to push together, and we'll give support now to other little organizations that are popping up around Europe that are starting to push back against the ESG movement."

AROUND THE NATION

OKLAHOMA IRE — The food fight over Oklahoma’s effort to blacklist Wall Street firms over their ESG efforts is getting messier.

Tony DeSha, executive director of the Oklahoma Public Employees Association, took his case to … the Pawhuska Journal-Capital — Pawhuska’s population is just shy of 3,000. He published an op-ed in the newspaper admonishing Oklahoma Treasurer Todd Russ over a state law requiring pension funds to stop doing business with financial firms accused of boycotting the oil and gas industry, our Allison Prang reports.

We “refuse to stand idly by as Treasurer Russ diminishes our members’ hard-earned retirement funds, and the promises made by the state to public-sector employees, in the name of political activism,” DeSha wrote in the column, which was also published on OPEA’s website.

DeSha’s comments come after the Oklahoma Public Employees Retirement System’s board of directors voted to keep its current roster of financial firms, triggering criticism from Russ — who is a member of the board.

Russ also pushed back against DeSha’s assertions, saying he’s just asking pensions to follow the spirit of the law.

“Their organization represents all of the pension holders in that organization and…I’m pretty sure most of the pension holders are concerned about the ESG conversation and do want” money supporting the state’s energy sector, he said in an interview.

 

SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Subscribe now to California Climate to keep up with the changes.

 
WASHINGTON WATCH

CLEAN CONFLICT — President Joe Biden’s clean energy agenda is facing threats from his own banking regulators, Jasper Goodman reports.

Impending rules intended to bolster America’s big banks against risk would make it much more expensive for them to provide a key type of investment in things like wind and solar power. Renewable energy developers warn the push could derail Biden’s attempts to curb greenhouse gas emissions.

The new rules would quadruple the capital that banks must have to back up investments involving the renewable energy tax credits, decreasing the financial benefit.

Democrats are now scrambling to prevent a conflict between their goals of fighting climate change and shoring up big banks.

“The implication is a massive reduction in the amount of capital that’s available to decarbonize our energy system and make investments in cheaper energy assets,” Rep. Sean Casten (D-Ill.) said.

DATA DIVE

DIVERSITY DATA — Companies are increasingly disclosing their directors’ sexual orientation, but corporate boards’ racial and ethnic diversity may be plateauing, according to a new report from The Conference Board, a nonprofit think tank.

The findings, shared first with Long Game, are based on corporate data collected as of mid-August.

  • Almost 3 in 10 companies in the S&P 500 are now disclosing directors’ sexual orientation, up from 7 percent in 2021. The same trend appears among companies in the Russell 3000, with 4 in 10 disclosing this information compared to 3 percent in 2021.
  • Smaller companies are more inclined to make this information public, compared with larger corporations. The fact that smaller companies are also more likely to have younger directors indicates a generational divide on willingness to disclose this data.
  • Meanwhile, 32 percent of directors in the S&P 500 are now female, up from 23 percent in 2018. And most companies in both the S&P 500 and Russell 3000 now have three or more female directors, though the share of new female directors is declining.
  • The reported level of racial and ethnic diversity on boards has stayed flat at 21 percent among Russell 3000 companies since 2018 — which “may be driven by directors’ reluctance to self-identify as being part of a demographic group,” the report said.
YOU TELL US

GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. Join us every Tuesday as we keep you in the loop on the world of sustainability.

Team Sustainability is editor Greg Mott and reporters Jordan Wolman and Allison Prang. Reach us all at gmott@politico.com, jwolman@politico.com and aprang@politico.com.

Sign up for the Long Game. It's free!

WHAT WE'RE CLICKING

— Toyota has indicated that it is close to a battery manufacturing breakthrough that could lead to production of EVs that can drive 1,200 kilometres on a single charge, the Financial Times reports.

The FT also has a deep-dive look at the global travails of the offshore wind industry.

— Architects are experimenting with ways to construct high-rise buildings from wood, which could reduce greenhouse gas emissions and store carbon. The Washington Post has that story.

 

Follow us on Twitter

Debra Kahn @debra_kahn

Greg Mott @gwmott

Jordan Wolman @jordanwolman

Allison Prang @AllisonPrang

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to unsubscribe.

Comments

Popular Posts

Can’t get no satisfaction

Presented by Electronic Payments Coalition: Shia Kapos' must-read rundown of political news in the Land of Lincoln Jun 28, 2024 View in browser   By Shia Kapos Presented by  ...

Want to win $100? Who doesn't!

Anyone can win up to $100 when they play this game. They make ALL the choices. They even get to set the game up any way they like!!  But no matter how clever they are, you win every time. Watch a FULL performance here: https://www.penguinmagic.com/p/16416 Here's what happens: 1. You set up a board with 6 spaces lettered A-F. 2. Your spectator decides where to put 6 different prizes: ($1, $5, $10, $20, $50 and $100).  It's a genuine free choice. 3. When they're satisfied, you reveal the steps of the ga...

Israel helps U.S. avoid cyberattack / NATO launching cyber rapid response force / Lazarus believed to have hacked Horizon

Plus: Amazon patches high-severity bug Inside.com Part of   Network June 30, 2022 Presented by Israel's IDF Unit 8200 helped stop a cyberattack on U.S. power plants. The announcement was made by the deputy chief of Unit 8200. More: IDF members realized that an attack on the U.S. power plants was brewing while they fought attacks on Israel's water system. The unit then informed law authorities in the U.S. The rest of the details were not presented due to the classified nature of the information, but similar attacks throughout the world have shown that energy remains one of the most targeted sectors by hackers. IDF Unit 8200 is the military intelligence unit of the IDF. The unit is highly secretive and consists of the most elite cyber specialists in Israel. Zoom Out: Israel's intelligence authorities have previously warned the U.S of other cyber...

Breaking News: Justice Department charges DePape following Paul Pelosi assault

The Justice Department on Monday charged David DePape with assault and attempted kidnapping following his alleged break-in at the home of Speaker Nancy Pelosi and her husband Paul. Paul Pelosi was hospitalized after DePape allegedly struck him with a hammer early Friday morning. Police tackled DePape after arriving on the scene, where officers found a roll of tape, white rope, a second hammer, gloves and zip ties, DOJ said Monday. DePape called out for Nancy Pelosi during the break-in, according to law enforcement officials — an echo of rioters' vocal search for the speaker during the Jan. 6 Capitol siege. The kidnapping charge carries a maximum sentence of 20 years in prison, and the assault charge carries a maximum sentence of 30 years. Read the latest To change your alert settings, please go to https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings .. This email was se...

Breaking News: Senate Republicans nudge Trump's trade chief for a tariff end game

Senate Republicans nudge Trump's trade chief for a tariff end game Breaking News Alert ...

Supercell ID Login [014 987]

014 987 - Use the verification code below to log in. ...

Breaking News: Appeals court clears way for Trump to restart mass firings of probationary workers

Appeals court clears way for Trump to restart mass firings of probationary workers Breaking News Alert ...

IN STOCK: "I freaking love this routine - I do it all the time!" -Dan Sperry, Illusionists, AGT

Watch a performance: https://www.penguinmagic.com/p/17842 "I've been a professional magician for over 50 years, and I've seen it all. I've only written 3 reviews. This is my 4th and for good reason. As far as getting deeply emotional reactions, this trick is the easiest way to do it. And every single time it has never failed to garner the reactions shown in the trailer." - Larry Kugelman ...

📄 Al Fahad Al Fahad posted an update

  🤣😂           Facebook                 📄 Al Fahad Al Fahad posted an update. 30 April at 22:47   View Status               This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help keep your account secure, please don't forward this email. Learn more.      

"This will fool you." -John Bannon (and he's right!)

One of my all-time favorite tricks, this one fooled me BADLY, and it'll fool you too. The secret is so clever, so fool-proof, it caught me completely by surprise. It takes zero skill, and works every time.   Before you watch:  Keep in mind the spectator shuffles the deck thoroughly, and fairly immediately before the trick starts -- you never rearrange their order! https://www.penguinmagic.com/p/13384 You're about to play a game.. and predict the outcome. 1. Your  spectator thoroughly shuffles the deck, an...