In states across the country, as well as on Capitol Hill, Republican lawmakers are proposing and passing legislation meant to halt corporate action on social issues of our day, from climate change to workers' rights. The bills weaponize civil liability and government contracting power to punish companies, investors, public pensions, and other financial players for taking even modest stands on issues and risks that actually have material business and investment significance. This coordinated “anti-ESG" campaign--referring to “Environment, Social and Governance” investing principles--is taking place alongside other efforts to obstruct social change (anti-CRT and anti-DEI), using acronyms that few people understand.
According to Pleiades Strategy, “the anti-ESG state legislative campaign has been largely driven by right-wing think tanks and advocacy organizations with a long history of engaging in efforts to stop corporate action on climate change, advance deregulatory and anti-union policies, and erode civil rights protections.”
The trend builds upon previous legislative tactics developed by the Israeli government lobby (to oppose the Boycotts, Divestment and Sanctions movement) and the firearms industry (to punish companies accused of “discriminating” against gun and ammunition manufacturers.)
As Pleiades describes it, “Anti-ESG legislation targets multiple state and federal policy levers, including state contracts, public worker pensions, financial disclosures, and federal rulemaking. These right-wing proposals seek to shape the private sector’s response to important risks, like climate change, pollution, workplace discrimination, or other important factors.”