From “Who Cares Wins” To Pernicious Progressivism: 18 Years Of ESG

ESG never had it so good! For starters, notice how I didn’t feel like I had to spell out the acronym. Until recently that was hardly the case. Gloriously, what the letters stand for is now known across the political spectrum. Not surprisingly, the meaning of the acronym varies across the political spectrum as well. This illustrates how ideology infuses language. Fiduciary duty is another example, particularly in the context of ESG. This is a story for another day.

Professor Elizabeth Pollman has written about the origins of the acronym. It can be traced back to the formation of the UN Global Compact and a 2004 report titled “Who Cares Wins: Connecting Financial Markets to a Changing World.” At that time George W. Bush was President and head of a very different Republican Party than the one we have today. Although my own political leanings are to the left, I yearn for the days of principled conservative views. But that too is a story for another day.

Reading Professor Pollman’s excellent paper inspired me to re-read the report. It was a very interesting and informative exercise in light of the almost insane politicization that has happened in the U.S. to ESG which I have written about and discussed in a podcast with Amy Cortese of ImpactAlpha.