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<ul class="summary-list"><li>Donald Trump Jr. will not take on a White House role, opting instead for the VC firm 1789 Capital.</li><li>The firm, co-founded by Omeed Malik, funds conservative causes like Tucker Carlson's media venture.</li></ul>The venture capital firm that Donald Trump Jr. is reportedly joining eschews investments that push social and environmental issues and instead focuses on what it calls "EIG," or entrepreneurship, innovation, and growth.The Palm Beach, Florida-based firm, called 1789 Capital — the US constitution went into effect that year — has invested in Tucker Carlson's new conservative media venture, Substack, and BlinkRx, a prescription startup.The president-elect's eldest son — who had an <a target="_blank" class="" href="https://www.businessinsider.com/trump-family-then-and-now-photos-2024-11">active role in Donald Trump's presidential campaign</a> and is now on his transition team — told a group of supporters at a conference earlier this week that he would be joining 1789 as a partner, <a target="_blank" class="" href="https://www.nytimes.com/2024/11/11/us/donald-trump-jr-firm.html">The New York Times first reported</a>. Several people with knowledge of the matter also told <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-11-12/don-trump-jr-opts-out-of-white-house-to-join-1789-capital?cmpid=BBD111224_MKTDLY&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=241112&amp;utm_campaign=marketsdaily&amp;embedded-checkout=true">Bloomberg</a> of Trump Jr.'s plans.The firm was co-founded in 2022 by Omeed Malik — a former Bank of America executive who also founded boutique investment bank Farvahar Partners — alongside author and investor Christopher Buskirk.Malik, who once <a target="_blank" class="" href="https://www.businessinsider.com/trump-guilty-verdict-donors-backing-conviction-2024-5">co-hosted a Trump fundraiser that raised more than $10 million</a>, serves as the firm's president and Buskirk as its chief investment officer, according to its website. Both Buskirk and <a target="_blank" class="" href="https://www.businessinsider.com/wall-street-political-contributions-by-name-for-trump-vs-harris-2024-8#omeed-malik-10">Malik donated to Trump's</a> 2024 presidential campaign, the Republican National Committee, as well as to other conservative causes and candidates, according to political donation <a target="_blank" class="" href="https://www.opensecrets.org/donor-lookup/results?name=omeed+malik&amp;order=desc&amp;sort=D">records</a>.The firm <a target="_blank" class="" href="https://www.1789capital.io/">bills itself</a> as "anti-ESG" — an acronym for companies that say they commit to certain environmental, social justice, and corporate governance-focused principles. One of 1789's areas of interest is in companies or industries that have faced negative effects of ESG, its website says. It also focuses on what it calls deglobalization, building out an economy that is parallel to the traditional one, and disrupting industries it deems weighed down by excessive bureaucracy. Like 1789 Capital, Trump Jr. has long been a proponent of the parallel economy, also called the "patriot economy," a term used by MAGA conservatives to refer to businesses that align with their traditional values.And Trump Jr.'s connection to Malik, the president of 1789 Capital, includes the pair's mutual support of a parallel economy platform called PublicSquare.Both <a target="_blank" class="" href="https://time.com/6317479/bud-light-boycott-maga-economy-donald-trump-jr/">Malik</a> and <a target="_blank" class="" href="https://www.msnbc.com/opinion/msnbc-opinion/maga-amazon-alternative-publicsquare-rcna127418">Trump Jr.</a> have been investors in and <a target="_blank" class="" href="https://www.publicsquare.com/events/town-hall">vocal supporters</a> of PublicSquare, an online shopping marketplace similar to Amazon that <a target="_blank" class="" href="https://investors.publicsq.com/overview/default.aspx#:~:text=Corporate%20Overview,both%20consumers%20and%20business%20owners.">bills itself as a place to connect</a> Americans to "businesses that value life, family, and freedom." In order to use the platform, businesses have to commit to <a target="_blank" class="" href="https://support.publicsquare.com/en/articles/6746843-what-values-do-the-businesses-on-publicsquare-have-to-share">PublicSquare's core values</a>, which include the "sanctity of every life," "the family unit," "freedom and truth," and adherence to the US Constitution.Malik and Trump Jr. together rang the New York Stock Exchange's ceremonial opening bell on the day the company went public in 2023, <a target="_blank" class="" href="https://time.com/6317479/bud-light-boycott-maga-economy-donald-trump-jr/">Time Magazine reported</a> at the time. Malik didn't return a request for comment from BI.As for 1789 Capital's own investments, the firm has contributed $15 million to the Tucker Carlson Network, the conservative commentator and former <a target="_blank" class="" href="https://www.businessinsider.com/tucker-carlson-raise-millions-new-media-company-neil-patel-report-2023-7">Fox News host's new media venture</a>, according to VC database PitchBook.On its website, the firm doesn't tout its specific investments but does offer a broad list of industries it's interested in, including consumer, fintech, healthcare, B2B SaaS, tech-enabled services, software, infrastructure, energy, and special situations.Representatives for Trump Jr. through the Trump Organization and the Trump transition team didn't respond to a request for comment from BI. Buskirk also didn't respond to requests for comment from BI, nor did the company's chief operating officer, Jordan Cohen.

This is the anti-ESG venture capital firm that Donald Trump Jr. is joining instead of taking a White House role

<ul><li>India's real GDP grew at around 8.2% in real terms in Fy24: Economic Survey </li><li>Retail inflation dipped to 5.4% in FY24, notes Economic Survey</li><li>Unemployment dipped to 3.2% in FY24</li></ul><keyword id="19912360" type="General" weightage="20" keywordseo="Finance-Minister-Nirmala-Sitharaman" source="keywords">Finance Minister Nirmala Sitharaman</keyword> is set to present the union budget on 23rd July, at 11 am. The budget session is scheduled to last between 22nd July and 12th August. This will be <keyword id="19956941" type="General" weightage="20" keywordseo="FM-Sitharaman" source="keywords">FM Sitharaman</keyword>'s seventh consecutive budget presentation under the third term of <keyword id="20205025" type="General" weightage="20" keywordseo="Bhartiya-Janata-Party" source="keywords" meta.keywordsubtype="org" meta.entityname="Bhartiya Janata Party" meta.hostid="261" meta.entityid="Bhartiya Janata Party">Bhartiya Janata Party</keyword> (BJP). All budget-related documents will be available at indiabudget.gov.in. You can watch the presentation live on Doordarshan, Sansad TV, and also on various official government YouTube channels. With this budget, Sitharaman will only precede former PM <keyword id="20342248" type="General" weightage="20" keywordseo="Morarji-Desai" source="keywords">Morarji Desai</keyword>, who has presented the highest number of budget (10) till date, followed by <keyword id="22330828" type="General" weightage="20" keywordseo="P-Chidambaram" source="keywords">P. Chidambaram</keyword> with 9 budgets, and Pranab Mukherjee, who has 8 budgets to his credit. In her recent address in parliament, Sitharaman noted that significant social and economic decisions will be a highlight of this budget. Notably, she concluded <keyword id="901788" type="General" weightage="20" keywordseo="pre-budget-consultations" source="Orion">pre-budget consultations</keyword>, which began on June 19th, on July 5th, where she met 20 invitees across 10 groups, including representatives from agriculture, skill development, finance and banking, energy, <keyword id="17408" type="General" weightage="20" keywordseo="Infrastructure" source="Orion">infrastructure</keyword> sector and more. <h2>Key expectations from Budget 2024</h2>Experts note that this budget will mainly focus on improving consumption, and boosting <keyword id="174143" type="General" weightage="20" keywordseo="infrastructure-development" source="Orion">infrastructure development</keyword>. Per reports, the government is also mulling raising the threshold of standard deduction under income tax regimes from the present Rs 50,000 to Rs 1 lakh. Additionally, to boost healthcare accessibility for the underserved in the country, the government is also contemplating to double the annual coverage offered under the <keyword id="20097876" type="General" weightage="20" keywordseo="Ayushman-Bharat-health-insurance-scheme" source="keywords">Ayushman Bharat health insurance scheme</keyword> from the present Rs 5 lakh to Rs 10 lakh over the next 3 years, along with also covering individuals aged over 70. Mr. Tashwinder Singh, CEO &amp; MD, Niyogin Fintech Limited, which offers credit to MSMEs, noted that upcoming regulatory changes should focus on simplifying compliance, taxation policies that encourage entrepreneurship, and incentivise innovations that drive R&amp;D investments. "We hope that the government takes measures to support the lending industry through access to capital and affordable interest rates, enabling entrepreneurs to realize their vision. Furthermore, we look forward to relaxed norms for NBFCs, allowing them to contribute more substantially to the economy. These measures will collectively propel India's economic growth, boost job creation, and position the Indian fintech industry as a strong contender in innovation and entrepreneurship", he continues. As for bolstering green infrastructure and clean energy production, Ms Aditi Balbir, Co-founder, EcoRatings notes that the 2024 union budget should prioritize investments in sustainable infrastructure projects and clean energy solutions, as 70% of greenhouse gas emissions stem from energy, industry, and buildings. "This will create a future-proof foundation for economic growth and help in achieving net-zero targets. Infrastructure is crucial in addressing climate change and meeting diverse societal needs. A transformative overhaul of our current and future infrastructure assets is essential. The budget should introduce financial incentives, such as lower interest rates on loans and dedicated grants, for companies committed to ESG compliance. This will create a clear link between sustainability efforts and economic benefits", she continued. <h2>Focus on Agri-credit, Real Estate in Budget 2024</h2>The government could also raise the target for agricultural loans disbursed during the year by up to 25%, setting the target at Rs 25 lakh crore. The government will also have to revamp the MSP (minimum support price) system in this space, focusing on challenges such as narrow coverage, dipping export competitiveness, discouraging private investment in this space and more. Another area that demands significant attention is real estate. Shubhi Jain, Principal Partner &amp; Head of CRM, Square Yards anticipates significant reforms in the upcoming budget under the new government. Securing industry status will unlock a plethora of legal and administrative benefits, along with much-needed tax incentives. "Also, while government’s focus on affordable housing under PMAY is commendable, recalibrating strategies in light of escalating construction costs is imperative for sustained inclusiveness and effectiveness. Moreover, enhanced tax reliefs and increased deductions on home loans, currently capped at INR 2 lakhs, are pivotal in stimulating demand and supporting prospective buyers", she says. <div type="Article" hostid="261" msid="111946291" title="Union Budget 2024-25 key highlights: Assistance for Nalanda's development as a tourist center" mstype="2" mssubtype="0"></div><h2>Short-term outlook positive, notes Economic Survey </h2>FM Sitharaman presented the Economic Survey 2023-24 in the parliament today, ahead of the budget. The survey noted that the Indian economy had managed to recover and expand in an orderly fashion post the pandemic, with the real GDP growing by 8.2% in FY24. Going ahead, prospects for continued strong growth in FY25 remain robust. India also managed to bring down its current account deficit (0.7% of GDP in FY24), while projecting a 7%+ growth rate in the medium term. On the employment front, the survey noted that AI might moderate India's services export growth by as much as 0.3 to 0.4 percentage points annually over the course of the next decade. As such, greater emphasis and focus is needed on areas like blockchain, artificial intelligence (AI), machine learning, Internet of Things, cybersecurity, cloud computing, big data analytics, augmented reality, virtual reality, 3D printing, and web and mobile development. The Indian labour market indicators have significantly improved over the past 6 years, with unemployment rates dipping to 3.2% in 2022-23. However, even as net payroll additions to EPFO have doubled over the last 5 years, signaling a healthy formal employment market, job creation and increasing women participation in workforce remain key areas of concern. For all updates and latest information related to the budget, don't forget to follow <a href="https://www.businessinsider.in/budget" data-type="tilCustomLink" target="_blank">Budget Insider</a>! SEE ALSO: <a href="https://www.businessinsider.in/budget/news/union-budget-2024-live-updates-finance-minister-nirmala-sitharaman-key-announcements-23-july/liveblog/111942008.cms" data-type="tilCustomLink" target="_blank">Union Budget 2024 Live Updates: FM Sitharaman announces internships for 10 million youth in 500 top companies</a> <a href="https://www.businessinsider.in/budget/news/loan-limit-under-mudra-scheme-to-be-doubled-to-20-lakh-sitharaman/articleshow/111950024.cms" data-type="tilCustomLink" target="_blank">Loan limit under MUDRA scheme to be doubled to ₹20 lakh: Sitharaman</a>

Union Budget 2024: When will it be presented, what time, where to watch and what are various sectors expecting?

For its critics, ESG might as well be a four-letter word.It represents woke capitalism. It propels a for-profit nanny state. Yet for all the <a target="_blank" href="https://www.businessinsider.com/conservative-politicians-esg-sustainable-investing-2022-6">political haymaking over environmental, social, and governance efforts</a> — such as Republicans throughout the country pushing anti-ESG legislation and threatening to pull state investments from companies that follow ESG principles — few companies seem to be walking away from their efforts entirely.Many appear to be talking less about their ESG initiatives, though. And job cuts could imperil <a target="_blank" href="https://news.bloomberglaw.com/daily-labor-report/corporate-diversity-pledges-fizzle-amid-layoffs-gop-backlash">progress on diversifying workplaces</a> — pledges that some <a target="_blank" href="https://www.businessinsider.com/layoffs-diversity-departments-some-ceos-talk-committed-racial-justice-2023-2">skeptics saw as performative gestures</a> following the murder of George Floyd in 2020.Despite challenges, much of the work continues because many companies across industries see it as good for business, ESG experts told Business Insider. In particular, they said, it's important for attracting and keeping younger workers."The work is quietly going on," R. Mukund, the CEO of Benchmark Gensuite, which makes software for ESG reporting, told BI.In fashion, Eileen Fisher is pushing the label she started nearly 40 years ago to reduce its environmental impact by using fewer materials. The company takes back old clothes to be upcycled. Fisher has even called for consumers to buy fewer clothes. She told BI she hopes education can help shoppers realize they don't need as many pieces as they might think. Fisher said the company's environmental efforts had helped attract workers.At the financial giant JPMorgan Chase, Vince Toye leads two divisions focused on affordable housing. In 2022, the bank financed $12 billion in deals to make it easier for people to obtain housing. Toye told BI he's also working on efforts to help renters who make too much to get government help but earn too little to afford market-rate rents.The work at Eileen Fisher and JPMorgan indicates ESG work is ongoing even as some businesses talk about it less often than they once did. Companies generally have been <a target="_blank" href="https://insight.factset.com/lowest-number-of-sp-500-companies-citing-esg-on-earnings-calls-since-q2-2020#:~:text=Since%20peaking%20at%20156%20in,Q1%202023%20decreased%20by%2023%25.">quieter about their ESG work</a> on quarterly earnings calls; data compiled by FactSet suggests the chatter about ESG peaked with fourth-quarter results in 2021.Mukund said many organizations have too much invested in their ESG programs and believe they'll help pull in workers and customers."You can't simply wish it away," he said. "No demagoguing is going to make it go away."But, broadly, does anyone care? ESG doesn't necessarily draw widespread attention. In a <a target="_blank" href="https://news.gallup.com/poll/506171/esg-not-making-waves-american-public.aspx">Gallup poll conducted in April</a>, only 37% of Americans reported being "very familiar" or "somewhat familiar" with the practice of using ESG principles to guide purchasing or investing decisions. The share who said the same in 2021 was 36%.Christine Spadafor, a visiting executive at the Tuck School of Business at Dartmouth, said part of the reason ESG work will stick around is that many organizations think it's good for drawing in younger workers, especially Gen Zers.Gen Zers are much more "decisive and discerning" than older generations about where they want to work, Spadafor said. "It's not just getting the job, but it's getting the job in the right place where the values of the company are consistent with their values," she added.Spadafor said that according to her research, many Gen Zers are choosing to apply to employers only after digging into an organization's stances on environmental sustainability and social issues. "They will look at the diversity in the workplace, and they will decide to apply accordingly," she said. "This generation is doing it more than previous generations."I know when I was looking for jobs, I wasn't looking for that. I was thinking, here's my skill set, you know, where do I want to work?" she said. "That's not the calculus that the younger job applicants are using."Spadafor said a focus on the social part of ESG can help companies improve their cultures and hang on to these workers during an "ongoing war for talent."Mukund said the low unemployment rate in the US and the pressures from inflation — like higher wages — that make going out to find workers difficult can push companies to look for ways to incorporate ESG ideas and diversify their workforces. He said it's causing leaders to say, "We need to implement these programs not for the sake of delivering a metric but because it's critical to business."At her fashion label, Fisher and her team set a goal of making the company's environmental footprint as small as possible."There was this moment where I realized that I had to actually say, 'We really want to be a 100% sustainable company,'" she said. But because she knew that wasn't possible, she hesitated, even as her staff grew more excited. "They were all saying, 'Let's do it. Let's make it the goal,'" she said. Fisher, 73, said she pushed aside her initial doubts and agreed they had to try.The company has taken steps to simplify its operations and mimic the simple designs of the clothing line Fisher started in 1984. Five years ago the brand was using 1,000 types of fabric; now that's down to 200, Fisher said. They're the ones the designers love, she said, and that are most sustainable.Fisher also wants her customers to buy fewer clothes. It's a view Fisher shares with her company's CEO, Lisa Williams, whom Fisher brought on in 2022 from Patagonia.Fisher acknowledged the position is tough for a leader of a fashion label to maintain. "I look at the sales every week," she said. "I want to know how are these products being received — what are they liking."Fisher said that buying less might mean helping customers understand the dozen foundational pieces of the season or the year and helping them find ways to mix and match garments.The company still has a long way to go, Fisher said, adding that she and her team feel compelled to do what they can. One focus is on moving from organic cotton and wool to versions of those fabrics produced through regenerative agriculture, a set of practices designed to boost soil health.JPMorgan's Toye, who's Black, knows how difficult it can be to obtain adequate housing. He grew up in a small town in Virginia that was essentially segregated. Toye and his six siblings lived in rentals until his mother was able to purchase a house in the "white" part of town.A big part of Toye's work now is focusing on so-called workforce housing. It's aimed at middle-income workers — the teachers, municipal workers, nurses, retail clerks, and others who have essential but not necessarily high-paying jobs. Often it's easier to bankroll market-rate rentals or low-income affordable housing than this middle layer, according to Toye.In 2022, Toye started JPMorgan's first capital-solutions business focused on workforce housing. He said more employers, recognizing the severity of the housing crunch in the US, are looking for ways to help house their workers because insufficient housing — and punishing commutes — can damage morale, hurt productivity, and increase turnover.Companies that opt to pump money into middle-income housing can get a first crack at reserving some of the units for their workers. Employers might also be able to negotiate a master lease for some units and then rent them to their workers, Toye said.For developers, this can help get deals funded and across the finish line. In addition to funding from employers, building a workforce housing unit might require a bank loan, local tax credits, abatements, land grants, and money from the developer. Toye said this is where JPMorgan Chase's connections can come in handy, allowing him to work with professionals across the bank to find a fix."There's no road map, and every deal's different," he said.Companies' ESG efforts might draw less publicity today, though they aren't likely to slow that much, Spadafor said. "It's unfortunate that the <a target="_blank" href="https://www.businessinsider.com/private-equity-fossil-fuel-divestment-dilemma-blackstone-carlyle-kkr-2023-4">political piece</a> has come into this," she said. Companies that are doing more around climate, for example, aren't likely to stop, Spadafor said. "They've got investors who are now paying more attention," she said. "They've got employees who want it, and they've got other stakeholders."Mukund said companies that have already set up reporting structures to gather information on ESG data are unlikely to stop, especially as some jurisdictions like the European Union will require reporting on some metrics. Already, there's growing interest in the so-called <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.integratedreporting.org/news/the-growing-momentum-for-integrated-reporting-part-1/">"integrated reporting" framework</a>, which pulls together data on a company's strategy, governance, and performance."The grooves are laid," he said. "What you could do is to stop looking at it or hearing about it or doing the things to improve upon your numbers, but the numbers are going to be there."Mukund said that working on ESG measures is in most companies' best interest because many, like his own company, continue to have trouble filling all their open roles. "We all have workforce pressures," he said. "Knowledge workers — they have a lot of choices."

ESG backlash dominated headlines in 2023, but it's still 'quietly' reshaping industries behind the scenes

<ul class="summary-list"><li>Experts share how ESG investors can understand and grow with emerging opportunities.</li><li>Environmental and Social Governance (ESG) investing is adapting to consumer behavior.</li><li>The conversation was part of Insider's event "Finance Meets Its Future," which took place on Thursday, March 23, 2023.</li></ul>ESG gives investors an opportunity to invest in companies with initiatives, missions, and goals that align with their values. However, <a href="https://www.businessinsider.com/sustainable-investing-esg-under-scrutiny-2022-7?r=US&amp;IR=T">ESG investing has recently come under review</a> for greenwashing or other hidden tradeoffs. Leaders in the field are working to better define and understand what ESG investing is and the good it can do for companies and beyond. Aniket Shah, global head of ESG and sustainable finance at Jefferies Group LLC, explained that at the moment, "We're trying to figure out what the climate topic's all about, and there's more energy, enthusiasm, excitement and questions around it than ever before." "Investors that we speak to get it, climate change and how policy makers are reacting to climate, how business leaders are reacting to climate, how technology is reacting to climate, is impacting asset prices," Shah said during Insider's virtual event, presented by Amberdata, "Finance Meets Its Future," which took place on Thursday, March 23rd.During the session "Navigating ESG Investing Challenges" Rebecca Ungarino, senior finance reporter, spoke with Shah and Nikita Singhal, coHead of sustainable investment and ESG at Lazard Asset Management. While expressing values through investing is not a new practice, Singhal deems that there needs to be a "healthy detangling" of what constitutes ESG versus virtue-based investing.Singhal said, "I define ESG as discovering and pricing, environmental, social governance risks and opportunities. And in that iteration, therefore, it is still very nascent. It's not something that has been around for decades."Singhal touches on how ESG is not one-size-fits-all solution for companies. The issues, values, and environments vary from sector to sector. She said, "The financial materiality of ESG is very contextual. And what I would argue today is to be able to do that well, you can't approach it in that monolithic way where you have 10 ESG metrics that you look across an entire portfolio, and call certain companies good or bad."Shah expresses how the variation and newness of ESG are what makes it exciting. The one component that he believes is cross-cutting is the 'G' for governance. Shah said, "The G of ESG, which oftentimes gets forgotten, is a cross-cutting topic because it's ultimately a question of, how are decisions made, and who controls a company?" He maintains that governance is the cross-cutting topic that any good CEO, investment banker, or investor would think through. The things investors should know about are changing and shifting based on consumer tastes and preferences. Singhal explained that consumers are, "voting with their wallets in terms of things that they care about." She continued, "From what their packaging should be like, that may not impact the valuation of a Coca-Cola or a large CPG company, but it certainly, we are starting to see it impact the valuations of packaging companies down the supply chain." When it comes to what Shah and Singhal are most excited about in the evolving ESG space Shah is motivated by carbon removal programs. Shah said, "There are technological breakthroughs happening every day in direct air capture and nature-based solutions and so on, that are coming to life because of technology and policy."Singhal concluded that she is looking forward to broadly flushing out what ESG is and gaining clarity. She said, "It's not there trying to prove that we can save the world. And it's not something that's projecting an individual's personal values or biases. It's just making us disciplined investors."

The future of ESG is expanding. Here’s how 2 experts define ESG investing and why it matters

<ul><li>Environmental, social, and governance (<keyword id="77363" type="ORGANIZATION" weightage="20" keywordseo="ESG">ESG</keyword>) stocks are offering better long term returns than the large caps on the Nifty 50.</li><li>ESG compliance may just be the latest fad, but it's forcing companies to take a serious look at their research and development, social policies, and what kind of impact they’re having on the environment.</li><li>The more ESG compliant a company is, the more investors will perceive it as being sustainable in the long run and more willing the investor will be to put in their money.</li></ul>On <keyword id="11137454" type="UNKNOWN" weightage="20" keywordseo="Earth-Day-2021">Earth Day 2021</keyword>, the theme selected by The <keyword id="6453991" type="UNKNOWN" weightage="20" keywordseo="Earth-Day">Earth Day</keyword> Network is restoring the planet in times of crisis. And this time, market forces are at play too. Environmental, social, and governance (ESG) is relatively new but there is big money chasing it already. More than a <a href="https://www.cnbc.com/2020/08/11/coronavirus-esg-and-sustainable-funds-surpass-1-trillion-for-the-first-time.html">$1 trillion</a> have been invested in companies that are making efforts towards sustainable development, which includes workplace diversity and transparency, aside from tackling climate change. And this investment in ESG-compliant companies seems to be giving more returns than other categories. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/5930992"></div>]]></cdata></div> An increasing number of investors are starting to care. “Companies go by profit maximization. When they clearly see that they have every reason to comply and this compliance will ensure that they’re better off also in terms of the profit that they earn, that’s where they’ll start doing it on their own,” Nawneet Vibhaw, a partner at Shardul Amarchand Mangaldas &amp; Co with a specialisation in environmental law, told Business Insider. The more ESG compliant a company is, the more investors will perceive it as being sustainable in the long run. <cmsannotation type="cmsannotation" annotationid="ESG and its money pull" comment="subhead" text="ESG and its money pull">ESG and its money pull</cmsannotation> There are a total of 10 ESG funds available in India. This includes new entrants like Axis ESG Fund, Mirae Asset Mutual Fund’s ESG Exchange ETF, and the ICICI Prudential ESG Fund. Some have been around for longer than others. And, they’re not all the same — varying by market cap and sector preferences — but the common denominator is that they all use ESG scoring to determine companies worth investing in. Top five performing ESG mutual funds in India: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Return percentage as on March 31, 2021: </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Three months </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Six months </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">One year </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis ESG Equity </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.51% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.53% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">44.14% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI Magnum Equity ESG Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.16% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21.56% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">53.30% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quantum India ESG Equity Fund Regular Growth </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.94% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25.86% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64.85% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Prudential ESG Fund Regular Growth (Launched October 2020) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.78% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.25% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">- </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quant ESG Equity Fund Regular Growth (Launched October 2020) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.35% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak ESG Opportunities Fund Regular Growth (Launched December 2020) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.23% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table>Source: MorningStar The Securities and Exchange Board of India (SEBI) introduced ESG for the top 1,000 companies on the stock exchanges in September, last year. The process is voluntary for now, but will be made mandatory once the next financial year kicks in. To be part of the ESG wave, companies have to share information with the regulator about redressal procedures for complaints, research and development for better social and environmental outcomes, and provisions for the differently abled. When it comes to the environment, they’re required to disclose the amount of energy consumed, water usage, and how sustainable are the input materials being used. Companies realise that if they don’t score very high on the ESG front, they may not find investors willing to shell out capital. <cmsannotation type="cmsannotation" annotationid="What is ESG?" comment="subhead" text="What is ESG?"><keyword id="11138302" type="UNKNOWN" weightage="20" keywordseo="what-is-eSG">What is ESG</keyword>?</cmsannotation> ESG is basically a set of metrics that helps stakeholders determine if a business is sustainable. This includes things like workplace diversity, addressing climate change, and transparency. And, when investors are looking for companies that will survive any economic upheavals — like a pandemic or natural calamities — they look at the companies’ ESG score. This means big wig companies are more likely to put their money in companies that ESG compliant than those which are not. <cmsannotation type="cmsannotation" annotationid="Why does the ESG score matter?" comment="subhead" text="Why does the ESG score matter?">Why does the ESG score matter?</cmsannotation> You can think of ESG like future proofing a company. Being ESG compliant means that a company is claiming to address issues like climate change and discrimination, that could create bigger hurdles in the future. <cmsannotation type="cmsannotation" annotationid="What is the problem with ESG?" comment="subhead" text="What is the problem with ESG?">What is the problem with ESG?</cmsannotation> The only criticism of ESG is that it’s more for the press and there is no one checking if net-zero promises and pollution control measures are actually being implemented on the ground. People who track the space say that the process of cross-checking isn’t in full force yet. “ESG investing faces its own set of challenges, the primary one is a lack of quality data. In our experience the lack of data has been not because companies don’t have good sustainability practices, it’s just that the disclosures are lacking,” said <a href="https://www.morningstar.in/posts/62487/esg-funds-available-india.aspx">Morning Star</a> in its report. Even so, the trend of investing in the right places, even if compliance checks come in later in a step in the right direction. “ESG is great for now, let’s see how it’s actually implemented, how companies actually comply with it over the course of the next four-five years. That’s sufficient time for actually making a lot of improvements,” said Vibhaw. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/revolut-appoints-former-flipkart-exec-paroma-chatterjee-as-its-india-ceo/articleshow/82181199.cms">Revolut starts India operations, appoints former Lendingkart, Flipkart executive Paroma Chatterjee as CEO</a> <a href="https://www.businessinsider.in/stock-market/news/hero-motocorp-nestle-india-hdfc-and-other-top-stocks-to-watch-out-for-on-april-22/slidelist/82190984.cms">Hero MotoCorp, Nestle India, HDFC and other top stocks to watch out for on April 22</a>

Earth Day: The impact of ESG investing on environment is not clear⁠— but its effect on money is real

What is a 529 plan? How they work and what they're used for

<ul class="summary-list"><li>The <keyword id="6362470" type="General" weightage="100" keywordseo="sec" source="Orion">SEC</keyword> wants fund managers to back up their environmental and social claims.</li><li>Environmental, social, and governance funds have grown rapidly, becoming a $3 trillion market.</li></ul>The Securities and Exchange Commission wants to rein in ESG funds that exaggerate their environmental and social bona fides as trillions of dollars flow into the market. The <a href="https://www.sec.gov/files/ia-6034-fact-sheet.pdf">agency proposed</a> requiring funds that say they have an environmental, social, and governance strategy to back up their claims by disclosing how they select companies and vote at annual meetings. Funds with an environmental focus would also have to report the greenhouse-gas emissions linked to the portfolio. The proposal comes as ESG funds balloon into a $3 trillion market with little transparency or rules around what it means, fueling misleading claims, greenwashing, and confusion for investors, the SEC said. "When I think about this topic, I'm reminded of walking down the aisle of a grocery store and seeing a product like fat-free milk. What does 'fat free' mean? Well, in that case, you can see objective figures, like grams of fat, which are detailed on the nutrition label," SEC Chair Gary Gensler said on Wednesday during a meeting to consider the proposal. "When it comes to <keyword id="8374461" type="General" weightage="60" keywordseo="esg-investing" source="Orion">ESG investing</keyword>, though, there's currently a huge range of what asset managers might disclose or mean by their claims." The SEC has been preparing for a crackdown on companies, asset managers, and advisers that say they are incorporating issues such as climate change and diversity and inclusion into their business strategy. Last year, the agency <a href="https://www.sec.gov/news/press-release/2021-42">formed</a> a Climate and ESG Task Force to scrutinize those claims, and in April it proposed that public companies disclose their carbon footprints and any plans to shrink them. On Monday, the SEC <a href="https://www.sec.gov/news/press-release/2022-86">announced</a> its first ESG-related settlement with the asset-management arm of BNY Mellon, which said that all of its investments in certain mutual funds had undergone an ESG quality review — even though that wasn't always the case. BNY Mellon Investment Advisor paid a $1.5 million fine, and the SEC said the firm had taken remedial steps, including changing certain processes and policies. The fine and SEC's latest rule marks the end of a month that <a href="https://www.businessinsider.com/esg-sustainable-investing-hsbc-backlash-2022-5">rocked the ESG market</a>, which is increasingly under fire from red-state officials and some top executives who argue that it's being used to fulfill a left-wing political agenda. Supporters say ESG funds are delivering higher returns and can steer capital into more sustainable investments. The ratings giant S&amp;P Global <a href="https://www.indexologyblog.com/2022/05/17/the-rebalancing-act-of-the-sp-500-esg-index/">last week removed Tesla</a> from its ESG Index as part of an annual review, citing employee accusations of racial discrimination and poor working conditions at a factory in Fremont, California, as well as the electric-vehicle maker's handling of a government investigation into deaths and injuries linked to its autopilot cars. Elon Musk, Tesla's CEO, <a href="https://twitter.com/elonmusk/status/1526958110023245829?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1526960512231153664%7Ctwgr%5E%7Ctwcon%5Es2_&amp;ref_url=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Ftesla-dumped-by-s-p-esg-index-and-musk-cries-label-is-a-scam-11652893098">tweeted</a> that "ESG is a scam," adding that the oil giant ExxonMobil still made S&amp;P's index. Ken Pucker, a senior lecturer at the Fletcher School at Tufts University, told Insider that while an ESG disclosure framework was important, he was skeptical that the market would lead to better environmental and social outcomes. "If the outcome we're seeking is planetary welfare, such as mitigating climate change and water scarcity, do I think enhanced disclosure will suffice? The answer is unequivocally no," he said. "I'm concerned the growth of ESG investment will dampen the need for regulatory intervention. Will government think we don't need to fix the rules because the investment community has grown ESG assets?"

The SEC wants ESG funds to show proof that they're not just greenwashing to draw in investor dollars

<a href="https://www.businessinsider.com/financing-a-sustainable-future-2022"></a><div type="image" title="Wind turbines spin amid dark weather clouds in Ireland" height="3400" width="5100" msid="92369546" hostid="261" sizebytes="299376"></div><ul class="summary-list"><li>Many companies are taking action toward a more sustainable future, but are not taking the step to report on their efforts and outcomes.</li><li>There are concrete steps that companies can take to start disclosing their <keyword id="12011554" type="UNKNOWN" weightage="60" keywordseo="esg" source="Orion">ESG</keyword> initiatives and data.</li></ul>In 2018, Rachel Hutchisson, vice president of global social responsibility at <keyword id="14255148" type="UNKNOWN" weightage="60" keywordseo="blackbaud" source="Orion">Blackbaud</keyword>, a technology company that makes cloud software for non-profits and other organizations, approached her CEO about putting out a sustainability report.The company had a long history of philanthropy and volunteerism, but nothing was tracked or shared with the public. Reporting, Hutchisson felt, would help Blackbaud show its investors, employees, and customers the progress it was making around environmental, social, and governance (ESG) issues, while also helping it define its ESG identity."We were doing all this work to support what we sell and we're telling inspiring customer stories, but we weren't talking about us and showing off that we're a place that really cares," she said. "I wanted to do a social responsibility report to make sure our leaders really understood what we were doing."Blackbaud released its first report that year, which Hutchisson admits was "pretty light," but it's grown to become a multifaceted document that outlines everything from the way it gives back to its communities to diversity and inclusion metrics to how its reduced its carbon footprint. As Blackbaud has grown its <keyword id="14255147" type="UNKNOWN" weightage="60" keywordseo="esg-reporting" source="Orion">ESG reporting</keyword> program, so too have other companies, both private and public. According to Deloitte's <a href="https://www.iasplus.com/en-ca/news/regulations/2021/s-p-500-and-esg-reporting">Center for Audit Quality</a>, 95% of S&amp;P 500 companies have publicly available ESG information.While a lot of companies are embracing ESG — many are developing social purposes, hiring more diverse employees, and reducing their environmental footprint — reporting takes their actions to the next level. Like financial reporting, it includes data stakeholders can use to see if a company is following through on its ESG commitments, which then helps hold the company accountable, said Marc Siegel, EY Americas corporate and ESG reporting thought leader.While reporting is just good practice, he said, more people are demanding to see actual metrics. EY found that 90% of investors want consistent reporting of ESG performance measures, while employees and management want reporting to help them run their businesses better. Regulators are also moving to mandate the inclusion of some ESG metrics within a public company's financial reporting."There are a lot of reasons to report, but if you think about what gives a company a valuation it's a multiple on earnings, which includes a bunch of stuff that's ESG even if it's not labeled as such," Siegel said. "Companies get multiples because of how they're going to react to a lower carbon economy, the productivity of their employees, their belief in management. That's E, S, and G. It helps all stakeholders understand the progress you're making as a business."<div type="image" title="Headshot of Rachel Hutchisson, vice president of global social responsibility at Blackbaud" height="768" width="768" msid="92369547" hostid="261" sizebytes="28158"></div><h1>How to start reporting </h1>Creating an ESG reporting program involves a lot of conversation, developing a deeper understanding of your business, detailed data-collecting and more. Fortunately, you don't have to do it all at once, Siegel said, who suggests starting small and expanding as time goes on. You have to start somewhere, though: Here are seven steps to get you going<h2>1. Think about why you want to report</h2>Start by thinking about why you want to report progress and who you want to report it to, said Sandy Peters, the CFA Institute's head of financial reporting policy. "Do you want to give your investors what they want? Is it going in a securities filing document? Is it for employees?" she said. "ESG reporting is about communication so think about who you want to communicate to and why you want to report in the first place." A lot of public companies, for instance, only report because ratings agencies are now baking ESG issues into their scores, while others know it's important to their customers.<h2>2. Do an internal ESG audit</h2>Companies may already be participating in ESG activities, whether they know it or not. Many businesses, for instance, give employees time off to volunteer, support causes their staff care about, or have workplace health and safety policies in place. When Hutchisson began her reporting journey, she started looking at what Blackbaud was already doing. That helped her see what the company wasn't measuring, but the audit also helped inform its first report. "You can start reporting without having to be technical about it by sharing your own story," she said.<h2>3. See what others are doing </h2>With so many companies now publishing ESG metrics on their websites, it's a good idea to take a look through other reports and see what's being reported. At the same time, see what the rating agencies, such as S&amp;P and Fitch, are looking for – they <a href="http://spglobal.com/_assets/documents/ratings/esg/esg_evaluation_brochure_digital.pdf">tend to want</a> information on greenhouse gas emissions, workforce diversity, waste and pollution, and much more.Also, consider looking at the new International Sustainability Standards Board's standards. It has several broad topics and industry-specific metrics to consider. "When companies say, it's overwhelming I don't know where to start, well we say you can start with these topics — it's manageable," said Neil Stewart, director of corporate outreach at the Value Reporting Foundation.<h2>4. Do a materiality assessment </h2>Once you've done research on what you may want to report, you need to do a materiality assessment, which involves figuring out exactly what you want to report on, Siegel said. You're not going to discuss everything – there are an endless amount of metrics to consider, many of which won't apply to your business.This process, which should ideally be done by an ESG committee of people from across various departments, involves interviews with stakeholders – investors, executives, staff, clients, and community members – to find out what ESG issues are most important to tackle. "It could come in the form of a heat map with all different issues, such as ones that are most important to stakeholders and ones that have the highest impact on value," Siegel said.<h2>5. Connect your ESG metrics with your financial ones </h2>Part of building a reporting program is ensuring your ESG metrics relate to financial performance, noted Siegel. For instance, it's well understood that diverse employee populations bring more perspectives to the table, which then spurs innovation. It's important to connect the two: What kind of financial boost from increased innovation could you get from hiring more diverse staff?"Think of it like a mosaic," he said. "The ESG data shows one part of the picture, while the financial information shows another. Put it all together and it brings the picture into focus."<h2>6. Start collecting data </h2>Once you know what you want to measure, you need to start measuring it. There are many different ways to gather information, whether it's through employee and customer surveys, generating reports from cloud-based technologies, such as human capital management software that can present diversity metrics or enlisting outside help to track carbon emissions.Your company will need to think carefully about how best to gather and then analyze information, but Peters also said businesses need to develop internal controls so they know the information they're collecting is accurate. For instance, she said it's important to have the right people accessing data and that your software is tracking the proper metrics so you can be sure everything is correct.<h2>7. Report and review</h2>Eventually, it will come time to report. The way you present your information and to which stakeholders will depend on the objectives you discussed at the start. Blackbaud, as with most companies, reports annually, but you could also report quarterly alongside your financials. Most reports show how specific categories have improved over the years, just like a financial-focused annual report would, but they also tell the story of the company's ESG journey.When your first report is finished, you'll want to start some of these processes over again. Blackbaud just completed a "mini-material" assessment, where they went back to some stakeholders to see if there were other ESG metrics to consider."We've added significantly in the third and fourth version of our report — it's like building muscle. It can be really intimidating, but you don't have to do it all overnight," Hutchisson said.

ESG reporting: A guide for your company to get started

<ul class="summary-list"><li>A group of vocal conservative lawmakers are criticizing aspects of ESG investing. </li><li>Insider has pinpointed key players, like Kentucky Rep. Andy Barr and Louisiana's treasurer.</li></ul>Republican officials are growing increasingly vocal in their attacks on investing with environmental, social, and governance considerations in mind. That's compounding scrutiny that ESG-labeled funds and <a href="https://www.businessinsider.com/esg-sustainable-investing-hsbc-backlash-2022-5">Wall Street's vast sustainability operations are already facing</a> from investors and regulators.The pushback from politicians like Sen. Tom Cotton of Arkansas and John Schroder, the treasurer of Louisiana, are growing more pointed. The lasting impact of anti-ESG legislation and political rhetoric, coming as politicians seek to raise their profiles ahead of the US midterm elections, remains to be seen.But they add to a challenging moment for ESG investors and big US banks and asset managers, all of which have <a href="https://www.businessinsider.com/sustainability-esg-investing-finance-recruiters-2022-3">heavily invested in ESG products and teams</a>, and could challenge the perception and embrace of ESG in the long run. As broader markets have plunged, investors pulled $2 billion from US equity exchange-traded funds in May, <a href="https://www.bloomberg.com/news/articles/2022-06-01/esg-equity-funds-had-worst-month-of-outflows-on-record-in-may">according to Bloomberg Intelligence data</a>, the first month of outflows in three years. "We believe many of these proposals and policies that 'push back' on ESG may impact sentiment more than long-term AUM growth," Morgan Stanley equity analysts wrote in a June report, adding that states with such proposals and policies represent some 30% of overall US public pension fund assets. These treasurers, governors, and state legislators hold sway over aspects of the sprawling ESG ecosystem, like writing policy or selecting funds for state investments. They're also using their online platforms to fire up followers. Sen. Cotton in a tweet on June 21 called on the Department of Justice and Congress to "crack down" on ESG investing, then tweeted the next day: "The next Congress will take action to end this scam."ESG standard-bearers like S&amp;P Global and BlackRock, the world's largest money manager and <a href="https://www.businessinsider.com/blackrock-asset-management-leadership-shuffle-new-cfo-2022-10">an influential proponent</a> of ESG investing, are <a href="https://www.businessinsider.com/BlackRock-republicans-esg-investing-bny-mellon-federated-hermes-cli2022-8">often the subject of their critiques</a>. These are corporations that sell ESG-linked products to make money and appeal to investors who want to see their values reflected in their portfolios. These officials often paint large financial firms' ESG strategies as functions of left-leaning agendas instead.This push, parts of which are <a href="https://www.wvtreasury.com/About-The-Office/Press-Releases/ID/394/WV-Treasurer-Moore-Leads-15-State-Coalition-to-Push-Back-Against-Bank-Boycotts-of-Traditional-Energy-Industries">coordinated actions between states</a>, also reflects a wider shift of Republicans challenging corporate America — a departure from years past, when the party was often aligned with interests of big business.In the lead-up to the midterms, Republicans will wield anti-ESG issues <a href="https://www.businessinsider.com/republican-culture-wars-glossary-2022-elections-woke-equity-cancel-culture-2022-2">in the scope of wider culture wars</a> as a way to suggest government overreach and drum up support for Republicans over Democrats, said Kodiak Hill-Davis, vice president of government affairs for the Niskanen Center and cofounder of non-profit Republican Women for Progress.A BlackRock spokesperson <a href="https://www.businessinsider.com/BlackRock-republicans-esg-investing-bny-mellon-federated-hermes-cli2022-8">told Insider in an earlier statement</a>: "We are a fiduciary to our clients, helping them navigate investment risks and opportunities so they can reach their long-term financial goals, not engineering specific decarbonization outcomes in the real economy." Here are key GOP players who are taking aim at ESG investing.<h2>Louisiana Treasurer John Schroder </h2>Schroder, who is set to take over as chair of the State Financial Officers Foundation, a group of conservative state finance officials, announced on Oct. 5 that he would liquidate the state's $794 million of investments with BlackRock.The treasurer said in a <a href="https://a4de8bd9-8c02-4b69-8f48-7792cfcaf8fd.usrfiles.com/ugd/a4de8b_38fdc8b7e3c04c9490bf332ce14f8d2f.pdf">letter</a> to BlackRock Chief Executive Officer Larry Fink that he has divested $560 million to date and would complete its divestment by year-end. He takes issue with the firm's commitment to supporting a goal of net-zero greenhouse gas emissions by 2050 or sooner. "Your blatantly anti-fossil fuel policies would destroy Louisiana's economy," he wrote to Fink. The asset manager remains among the largest institutional shareholders of Chevron, Exxon, Marathon Petroleum, and BP. "I fully realize, as your representatives noted during our recent meeting, that BlackRock currently invests in oil and gas companies," Schroder wrote. "Nonetheless, your consistent public messaging has made very clear what BlackRock is demanding from fossil fuel company CEOs and every other company they invest in."<h2>Kentucky Treasurer Allison Ball </h2>On June 29, Ball sent a letter with other Kentucky officials to S&amp;P Global's ratings business to object to the company incorporating ESG factors when determining states' credit ratings. It also objected to its assessment of her state.The company's website says ESG considerations have played a large role in assessing credit ratings since before before ESG became a well-known term. But Ball, who is now serving in her second term as state treasurer, objects to ESG usage in credit indicators at all. "It creates a dangerous framework for state borrowing mechanisms, whereby state creditworthiness will fluctuate wildly based on ever-changing political tides," the letter said. Ball added that she agreed with her "friends in Utah" who share similar concerns, referring to a letter officials including Gov. Spencer Cox sent to S&amp;P in April.A spokesperson for S&amp;P Global Ratings referred Insider to the firm's most recent credit report of Kentucky, from February, which affirms its A credit rating with a positive outlook and its ESG assessment of E-2, S-3, and G-2. S&amp;P uses a scale of 1 to 5, with 1 denoting the most positive rating in that category. <h2>West Virginia Treasurer Riley Moore </h2>Moore has emerged as one of the loudest voices against ESG investing, declaring that banks and asset managers could lose the state's business if they do not work with the energy industry. On July 28, Moore's office published a <a href="https://www.wvtreasury.com/About-The-Office/Press-Releases/ID/452/Treasurer-Moore-Publishes-Restricted-Financial-Institution-List">list</a> of firms restricted from contracts with the state over certain fossil fuel policies, including Goldman Sachs, Morgan Stanley, and JPMorgan Chase.He has focused efforts on criticizing BlackRock over the firm's commitments to encourage companies to transition to an economy with <a href="https://www.businessinsider.com/blackrock-ceo-larry-fink-annual-letter-eliminate-greenhouse-gas-emissions-2021-1">net zero greenhouse gas emissions,</a> a move that Moore says punishes states like his. Funds BlackRock manages on behalf of clients remain significant shareholders of fossil fuel companies. West Virginia is the fifth-largest energy producer in the US and provides about 5% of the country's total energy, almost half of which is from coal production, according to the US Energy Information Administration.In January, the state's Board of Treasury Investments stopped using a BlackRock fund over Moore's concerns. At the time, West Virginia's investment with BlackRock was just $21.8 million. The state has since used a fund offered by Dreyfus, a unit of BNY Mellon, a spokesperson for Moore said. A BlackRock spokesperson declined to comment. <h2>Rep. Dan Crenshaw of Texas</h2>Rep. Crenshaw, a Texas native whose father worked in the state's oil and gas industry, was elected in 2018. He sits on committees directly involved with environmental policy, including the House Energy and Commerce Committee and the House Select Committee on the Climate Crisis. In an episode of his podcast in April, Sen. Crenshaw said ESG factors are "threatening to destroy the American energy industry, including the natural gas industry, which is the latest target of ESG and radical activist investors."<h2>Sen. Tom Cotton of Arkansas</h2>Sen. Cotton, who sits on committees including the US Senate Committee on the Judiciary, has recently spoken out on Twitter to express his concern with corporate ESG.<div type="image" title="Senator Tom Cotton, a Republican from Arkansas, sits and stares with a red flashing light next to him. He wears a suit and tie." height="2666" width="4000" msid="94708950" hostid="261" sizebytes="1281680"></div>"Let's call the ESG movement what it is: illegal corporate collusion to implement leftist policies," he said on June 21 to his 325,000 followers, adding in another tweet the next day: "The next Congress will take action to end this scam."It is unclear what about ESG investing is illegal or what plans Sen. Cotton has. Spokespeople for Sen. Cotton did not return a request for comment. <h2>South Carolina Treasurer Curtis Loftis </h2>Last September, he emailed JPMorgan management and warned banks "to stay out of political culture wars and particularly abstain from the petty, 'woke' cancel culture," according to a <a href="https://www.nytimes.com/2022/05/27/climate/republicans-blackrock-climate.html">New York Times report in May</a>.Loftis, who is serving his third term, signed a letter to the SEC in late June to oppose the commission's climate disclosure rule. He views the SEC's disclosure as overreach. "This is another flagrant attempt by the Biden administration to take power away from the states by circumventing the democratic process and legislating through SEC regulations," Loftis said in a statement at the time. <h2>Rep. John Rose of Tennessee </h2>Rep. Rose, who is serving his second term in Congress and is a member of the US House Committee on Financial Services, led a letter to the SEC in May expressing concern over the commission's climate disclosure rule. "To do business with public companies, small farms would be required to disclose a significant amount of climate-related information," the letter said. "But unlike large corporations, small farms do not have full-scale compliance departments."Rep. Rose said last month that he expects Republican lawmakers to try and overturn the SEC's rules if the party takes control of the House of Representatives in the midterm elections this fall, according to a <a href="https://thehill.com/policy/finance/3525223-proposed-esg-reporting-rule-in-gop-crosshairs/">report from the Hill</a>. <h2>Rep. Andy Barr of Kentucky</h2>Rep. Barr introduced a bill in March, called the Ensuring Sound Guidance (ESG) Act aimed at requiring fund managers to prioritize financial returns above all other factors when acting as fiduciaries for their clients.Barr, who sits on the US House Committee on Financial Services, introduced the bill with Republican Rep. Rick Allen of Georgia. Rep. Allen sits on the Health, Employment, Labor and Pensions Subcommittee. "The ESG Act is intended to protect investors from their returns being diminished because of politically motivated asset managers who prioritize environmental or social goals instead of returns," the lawmakers said in an announcement at the time. Rep. Barr said the ESG movement is a "threat" to America that is "undermining American competitiveness, according to an <a href="https://www.axios.com/2022/06/16/us-chamber-commerce-house-republicans">Axios report last month</a>. <h2>Sen. Dan Sullivan of Alaska</h2>Sen. Sullivan, who sits on the US Senate Committee on Environment and Public Works, introduced a bill in May aimed at curbing the power of large asset managers like BlackRock. The firms' commitments to ESG is tied to his proposed legislation, <a href="https://www.sullivan.senate.gov/newsroom/press-releases/sullivan-discusses-index-act-and-record-high-energy-prices-on-squawk-box">Sen. Sullivan said in an appearance on CNBC</a> in May. Sen. Sullivan and his cosponsors, including Republican Sens. Marco Rubio and Rick Scott of Florida, want to see power shifted away from big money managers on proxy votes and toward investors in funds run by those firms."This would democratize corporate governance and largely eliminate the influence that these firms wield at shareholder meetings, often to push political agendas," he said in a statement at the time. Since last October, BlackRock <a href="https://www.businessinsider.com/blackrock-investor-shareholder-proposal-voting-2022-6">established and has expanded a program</a> meant to open up proxy voting choice to more large investors like pension funds and endowments. <h2>Gov. Greg Abbott of Texas </h2>Last year, Gov. Abbott signed into law a bill that prevents Texas from investing in or doing business with firms that cut ties with the energy industry.<div type="image" title="Texas Governor Greg Abbott stares with an American flag in the background." height="3667" width="5500" msid="94708951" hostid="261" sizebytes="440094"></div>"This bill sent a strong message to both Washington and Wall Street that if you boycott Texas energy, then Texas will boycott you," Rep. Phil King of Texas said last year, according to an NPR report from April. Abbott, who is seeking reelection in November, was early to denouncing ESG investing. At the time, it was <a href="https://sidleyenergyblog.sidley.com/texas-legislature-passes-anti-esg-bill/">one of the first such state laws</a>. But a spokesperson for the <a href="https://www.npr.org/2022/04/29/1095137650/texas-stumbles-in-its-effort-to-punish-green-financial-firms">state's comptroller's office told NPR</a> in April that enforcing the law "has proven challenging." "The simple truth is that the creation of this list would present no challenge whatsoever if these companies were open, transparent and honest about their position on the fossil fuel sector," the spokesperson told NPR. <h2>Sen. Mike Crapo of Idaho </h2>Sen. Crapo, a member of the US Senate Committee on Banking, Housing, and Urban Affairs, has spoken out about his concerns with ESG frameworks.Last month, Sen. Crapo <a href="https://www.youtube.com/watch?v=U7w7drI2szw">hosted a discussion</a> with Idaho Treasurer Julie Ellsworth about ESG investing and included Vivek Ramaswamy, an anti-ESG pundit who is widely followed on Twitter. Sen. Crapo said he opposes ratings agencies using ESG scores when evaluating states' credit ratings. "The use of these criteria may seem innocuous on its surface. But unfortunately, many standards are subjective and grant regulators and corporations undue influence on public policy," Sen. Crapo said. This story was first published on July 7, 2022 and was updated on October 6, 2022 to reflect the Louisiana treasurer's announcement that he would liquidate the state's investments with BlackRock by year-end.

Meet 11 Republican officials crusading against BlackRock and ESG investing ahead of the midterms

<div type="image" title="Bank of America Financing a Sustainable Future series illustration for Prosperity pillar" height="2250" width="3000" msid="89976023" hostid="261"></div> <ul class="summary-list"><li>Prosperity goals seek to help communities thrive, which is crucial to ensure a sustainable future.</li><li>Companies often overlook the importance of tracking the effect of their community initiatives.</li></ul><keyword id="11896309" type="UNKNOWN" weightage="100" keywordseo="sustainability" source="Orion">Sustainability</keyword> is not possible without thriving communities. Prosperity goals are designed to foster the health and growth of communities across multiple tracks — including adequate employment, economic opportunity, and access to education and training. The World Economic Forum's International Business Council said four of the United Nations' <a href="https://sdgs.un.org/goals">17 Sustainable Development Goals</a> relate to prosperity:<ul><li>Goal 1: <a href="https://sdgs.un.org/goals/goal1">No poverty</a></li><li>Goal 8: <a href="https://sdgs.un.org/goals/goal8">Decent work and economic growth</a></li><li>Goal 9: <a href="https://sdgs.un.org/goals/goal9">Industry, innovation, and infrastructure</a></li><li>Goal 10: <a href="https://sdgs.un.org/goals/goal10">Reduced inequalities</a></li></ul>Companies may believe that they feed prosperity by simply by being successful at doing what they do. Growing corporations hire people, fund healthcare, and offer training. They pay taxes. Cities compete for big employers precisely because they bring these boons to their local areas. So if companies are doing all this simply by existing, why focus on prosperity as one of the pillars of a sustainable future? The answer is at the heart of the term "sustainability." It's not enough to take satisfaction from what the organization is doing now. It's critical to take a long-term view of the community and tailor programs designed to endure.That means acting outside the company and its own employees. "A company's value is increasingly reflected in the off-balance sheet intangible assets and value drivers associated with economic and social prosperity," said a WEF International Business Council <a href="https://www3.weforum.org/docs/WEF_IBC_Measuring_Stakeholder_Capitalism_Report_2020.pdf">report</a> on measuring sustainable outcomes. In <keyword id="11897509" type="UNKNOWN" weightage="60" keywordseo="target" source="Orion">Target</keyword>'s 2021 <a href="https://corporate.target.com/_media/TargetCorp/Sustainability-ESG/PDF/2021_Target_Corporate-Responsibility-Report.pdf">report</a> on corporate responsibility, for example, the retail giant broke down its strategy for community investment, pledging to spend more than $2 billion at Black-owned businesses by the end of 2025 and reporting metrics such as its overall workforce demographic by gender and race. "The communities where we live and work sustain businesses, employees and families. We recognize our success is intrinsically linked to their well-being and prosperity," the report said. Target said it gave 5% of its profits to communities, which in 2020 equated to $245 million in cash and in-kind donations.Quantifying these efforts, and reporting on them, is commonly overlooked. "Most businesses, however, are not fully capturing these intangible assets and value drivers," <a href="https://www3.weforum.org/docs/WEF_IBC_Measuring_Stakeholder_Capitalism_Report_2020.pdf">the WEF report stated</a>. "By measuring and reporting on aspects of prosperity more holistically, companies and their stakeholders can become better informed." <h2>Launching, and tracking, Citizen Verizon</h2>Verizon has issued <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.verizon.com%2Fabout%2Fnews%2Fverizon-prices-third-1-billion-green-bond">three green bonds</a> over the past few years, but its sustainability declarations expand beyond climate. The telecommunications company announced its new responsible business plan, called <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.verizon.com%2Fabout%2Fresponsibility">Citizen Verizon</a>, in July 2020. "Citizen Verizon is actually the culmination of 10 years of work," said Rose Stuckey Kirk, Verizon's chief corporate social responsibility officer, citing the <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.verizon.com%2Fabout%2Fresponsibility%2Fdigital-inclusion%2Fverizon-innovative-learning">Verizon Innovative Learning</a> initiative, which provides children access to STEM education programs. Verizon started thinking about how to expand its commitments into other core areas, eventually settling on "digital inclusion" and "climate protection," Kirk said. "And what we call human prosperity. How do we elevate economic opportunity for everyone?" she continued.The Citizen Verizon program comprises its education programs, digital resources for small businesses, technology employment training, an extensive volunteer program for employees within their local communities, and ongoing climate initiatives. Verizon has baked measuring and reporting into its programs for the past decade. "It takes about 10 years to actually drive change," Kirk said.One example is its digital-skills training, which pledged to provide 10 million young people training by 2030. "We took a look at what would be the components that would enable that," Kirk said. "So as we built that platform out, we built it against that target. And then we set year over year, month over month, goals against 10 years. So I can tell you, and my team can tell you, at any given month where we are against our annual targets, and what that means against our 10-year target."The work is audited by third-party companies to verify accuracy. Even on a day-to-day level, the employee responsibility for analyzing the data and results was separate from the program managers, which Kirk believed was key to ensuring that those closest to the program weren't reporting only on positive results. Kirk said, "I don't want to be a brand that's just doing performative work out in the market, shouting about how much we care without being able to show the proof in the pudding of what that impact looks like."

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