No, Criticizing ESG Is Not An Act of "Anti-Capitalism"

The ambiguity of the Environmental, Social, Governance (ESG) investment trend is leading to growing skepticism and potential legal woes for the movement. Many Democratic lawmakers and allies in the media are rushing to instead blame ESG’s fumbles on Republicans. For example, an op-ed on CNBC.com this month signed by Democratic senators Sheldon Whitehouse, Brian Schatz, and Martin Heinrich suggested that GOP skepticism of ESG investing is anti-capitalist. While there have been some instances of overreach by Republicans on this issue, the Left’s increasingly common line of attack — to equate ESG opposition to a distrust of free markets — is not only baseless but hypocritical. Recent underperformance by ESG funds have been the direct result of declining demand and risks inherent in ESG investing — not GOP lawmakers.