Anti-ESG backlash in US is overstated, JPMorgan exec says By Reuters

By Virginia Furness

LONDON (Reuters) – The affect of a political backlash in opposition to environmental, social and governance-related (ESG) points in the US is overstated and having little bearing on the nation’s burgeoning inexperienced economic system, a JPMorgan govt stated on Tuesday.

Whereas some firms and buyers have been saying much less about sustainability, they have been nonetheless transferring cash in the same method to friends in Europe, Chuka Umunna, JPMorgan’s world head of sustainable options, instructed the Reuters Power Transition convention in London.

“If you happen to peel away all of the noise and take a look at what buyers are doing, it is not so totally different, albeit they will not be utilizing the labels fairly in the way in which that we do in Europe,” Umunna, who can be the financial institution’s regional head of inexperienced economic system funding banking, stated.

“The U.S. will not be a lot pulling again due to the weaponisation of the time period ESG, the fact within the States is extra advanced than that.”

A number of U.S.-based buyers, together with the fund arm of JPMorgan, have pulled again from world local weather coalitions this yr amid a tense political backdrop as some U.S. Republican politicians stated membership may breach antitrust guidelines.

Regardless of that, Umunna famous whereas extra anti-ESG resolutions have been proposed throughout the newest proxy-voting season, lower than 2% really handed. On the state degree, in the meantime, lower than 10% of anti-ESG payments really handed.

Whereas these funds attempting to boost funding {dollars} in Republican states may tailor their pitch accordingly, the massive world shoppers of the financial institution’s fund arm tended to stay to a single funding stewardship coverage throughout the globe.

For firms in the actual economic system of the US searching for funding or financial institution mortgage help, arguably the larger challenges got here from inflation, supply-chain points and excessive rates of interest, he added.

“Is all of the noise miserable the valuations? I am unsure it essentially is,” he stated. “I believe there are extra basic points at play.”