JPMorgan Exec: U.S. Anti-ESG Sentiment Won’t Derail Green Investment Trends

JPMorgan Exec: U.S. Anti-ESG Sentiment Won’t Derail Green Investment Trends

by  
AnhNguyen  
- 8 octobre 2024

At the Reuters Energy Transition conference in London, Chuka Umunna, JPMorgan’s global head of sustainable solutions, addressed the perception of an anti-ESG (Environmental, Social, and Governance) backlash in the United States. He emphasized that this political sentiment is overstated and is not significantly affecting the country’s green economy. 

Umunna noted that while some U.S. companies and investors may be less vocal about sustainability, their investment behaviors remain largely aligned with their European counterparts. He explained, “If you peel away all the noise and look at what investors are doing, it isn’t so different.” This indicates that U.S. investors continue to prioritize sustainability reporting, even if they refrain from using the ESG label as prominently. 

Despite a rise in anti-ESG resolutions during recent proxy-voting seasons, Umunna pointed out that less than 2% of these proposals passed. Similarly, fewer than 10% of anti-ESG bills at the state level were enacted. This suggests that the political backlash may not translate into significant changes in investment strategies. 

Umunna also highlighted that the primary challenges for companies seeking investment or loans in the U.S. are inflation, supply chain disruptions, and high interest rates, rather than the anti-ESG sentiment. He questioned whether the negative rhetoric around ESG is genuinely impacting valuations, implying that more substantial economic factors are at play. 

In conclusion, the conversation around ESG and sustainability reporting in the U.S. remains complex, with ongoing investment flows reflecting a commitment to sustainability despite the surrounding political climate. As companies navigate these challenges, the focus on sustainable practices and reporting will likely persist. 

 

Sources : 

https://www.reuters.com/sustainability/climate-energy/anti-esg-backlash-us-is-overstated-jpmorgan-exec-says-2024-10-01/ 

https://money.usnews.com/investing/news/articles/2024-10-01/anti-esg-backlash-in-us-is-overstated-jpmorgan-exec-says 

https://uk.marketscreener.com/quote/stock/JPMORGAN-CHASE-CO-37468997/news/Anti-ESG-backlash-in-US-is-overstated-JPMorgan-exec-says-47978535/ 

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