I have written about the polarization around ESG and how some Republicans are even weaponizing the concept, to the detriment of their own voters. Most recently I have taken a small step to help reduce the heat in this rhetorical war by offering to meet with anyone in the GOP who would be willing to have a conversation with me about their concerns regarding ESG. This offer is in its very early stages. But I’m pleased to say that I have a few initial takers. Furthermore, my liberal friends who have contacted me are all supportive of this idea. Preliminary returns suggest that members on both sides of the aisle realize this rhetorical war isn’t going to solve the problems we are all facing and must solve them together.

This can only be done by having companies which can create sustainable long-term value, and this requires system-level issues which will inhibit their ability to do so. In this regard, new research from The Investment Integration Project (TIIP) is a very useful contribution. Approaching the Tipping Point: Recommendations for building the marketplace for system-level investing provides data and detailed analysis on the current state of the investment industry and its ability to successfully address system-level issues, something it must do in order for it to meet the needs of its ultimate beneficiaries. (I am a member of TIIP’s Advisory Council.)

The report was informed by a wide-ranging survey of nearly 100 investors and other industry stakeholders which was distributed by Intentional Endowments Network, Transform Finance, Mission Investors Exchange, NextBillion, and among others. TIIP also convened focus groups and conducted interviews with representatives from California State Teachers’ Retirement System (CalSTRS), CFA Institute, Harvard Management Company, Legal & General Investment Management (LGIM), Money Management Institute, NYS Common Retirement Fund, Thornburg Investment Management, UN PRI, and other industry leaders.

What TIIP found is that investors are aware of the need to tackle systemic social and environmental risks like climate change, income inequality, and others, but they do not necessarily know how to begin implementing these strategies. This finding mirrors the broader industry concern around “greenwashing” of ESG—that current sustainable investing processes are such in name only, with ESG funds unable to implement processes that achieve true environmental and social results.

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