Commentary
The tide of environmental, social, and governance (ESG) causes has been rapidly receding. Many of the largest corporations in the United States have made a U-turn, and major financial institutions are withdrawing from international alliances and coalitions. The Trump administration has launched an aggressive attack on diversity, equity, and inclusion, which falls under the “social” aspect of ESG, within the federal government.
However, the most intriguing battle over ESG and DEI is taking place at the state level. Red states have been engaged in a longstanding conflict over ESG policies. Texas and Florida spearheaded the movement in 2022 and 2023 by implementing policy changes and enacting laws that restrict ESG initiatives. Following their lead, other states such as Tennessee, Alabama, Indiana, Oklahoma, Montana, and many more have joined the fray.
