Greenwashing backlash hinders ESG investment in US - Professional Wealth Management

The main conclusion from the article is that US alternative investment managers are lagging behind their European counterparts in meeting ESG standards, with Europe leading the way. Despite progress in ESG management processes globally, the US faces challenges due to regulatory pushback and differing investor pressures. The article highlights the bipolar environment and the impact of the war in Ukraine on ESG backlash. Additionally, there is an increase in greenhouse gas emission monitoring and awareness of DEI among private equity managers. In the first paragraph, the article discusses the overall progress in ESG management processes, with Europe leading the way and the US progressing more slowly. The article cites LGT s ESG report, which shows an increase in private equity managers with robust ESG management processes from 27% in 2014 to 73% today. The second paragraph focuses on the differences between the US and Europe in terms of ESG commitment. Europe has an 87% rate of managers rated as excellent or good, while only 16% of US managers achieved this rating. The article attributes these differences to historical reasons, with Europe embracing stakeholder capitalism and the US favoring shareholder capitalism. The third paragraph delves into the challenges faced by US managers in engaging with ESG topics due to regulatory pushback and differing investor pressures. The article mentions the introduction of anti-ESG bills and resolutions in US states and the pressure from northern European pension plans. In the fourth paragraph, the article discusses the complex and bipolar environment that makes it difficult for ESG progress. It highlights the reversal of climate commitments by companies and investment firms and the retreat of the UK from key climate goals. The final paragraph emphasizes the importance of the forthcoming US election and the need for decarbonization. The article also notes the increase in greenhouse gas emission monitoring and the growing awareness of DEI among private equity managers. In summary, while ESG management processes have improved globally, US alternative investment managers are lagging behind Europe due to regulatory challenges and differing investor pressures. The article highlights the need

Source: pwmnet.com
Published on 2024-10-07

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