ESG Finance at Crossroads as Political Pressures Mount

The transatlantic divide on ESG

Despite mounting pressures, a distinct transatlantic divide is emerging in approaches to ESG.

Louise Marfany, Director of Financial Sector Standards at ShareAction, notes that while US asset managers’ support for sustainability-related shareholder resolutions fell to an average of 25% in 2024.

“European managers’ support remained high at an average 81%,” she says.

“The real question is whether this hostile environment will lead them to change their approach to sustainability in practice.”

This divergence suggests that while the ESG backlash has gained significant traction in the US, European commitment to sustainable finance principles remains relatively robust.

Be that as it may, the drastic drop in Impax’s ESG assets provides some worrying evidence that, even in Europe, ESG may not be as appealing an investment opportunity as it once was.