The Goods, November Edition
Just weeks after the election, President-elect Trump’s vision for America is starting to take shape, and we are here to help you make sense of it. Among other things, the President-elect wants to roll back environmental regulations and appoint anti-ESG leaders – and with Republicans controlling the White House and both chambers of Congress, we are likely to see a real shift in the landscape.
The situation today is a result of well-funded and coordinated efforts from dark money advocacy organizations and extreme policymakers. These groups have attacked ESG, responsible investing, and the clean energy economy at the state and federal level, posing real threats to the way companies operate and Americans’ personal financial security. Still, the American public overwhelmingly supports ESG, wants businesses to operate sustainably, and opposes government restrictions on ESG.
GSG is tracking several leadership appointments and potential policy shifts that could result in increased pressure on companies to dial back their ESG initiatives.
In this month’s special edition of The Goods, we break down the key areas to watch on the anti-ESG front, as well as research and data to arm public affairs and communications professionals with information and context to aid in conversations with business executives, policymakers and staff, and the media.
This is a special edition of The Goods, a newsletter for social impact communicators that helps you keep track of the latest updates, trends, industry best practices, and much more. This edition was authored by Marneé Banks and Lydia Niles, experts in anti-ESG politics.
The newsletter is compiled and curated monthly by Jade Floyd, Victoria Dellacava, and Mia Saponara.
Trump’s Anti-ESG Advisors
Some of the closest advisors to President-elect Trump have strong ties to and financial interests in the oil and gas industry. While we are still waiting on some nominations and appointments, at this time we have already seen just how influential these voices will be in the new administration.
Chris Wright
President-elect Trump has nominated Liberty Energy CEO Chris Wright to lead the Department of Energy. Aside from the obvious conflict of interest, Wright is one of several Big Oil donors on the frontlines of the anti-ESG movement. He has repeatedly made headlines for denying the climate crisis, misrepresenting the impacts of fossil fuels on the environment, and attacking critics of the oil and gas industry.
Vivek Ramaswamy
President-elect Trump has nominated entrepreneur Vivek Ramaswamy to lead the new Department of Government Efficiency. In 2022, Ramaswamy founded a firm solely dedicated to managing anti-ESG assets. He gained notoriety during his presidential bid (campaign slogan: “Stop Wokeism. Vote Vivek.”) for espousing misinformation about corporate ESG policies and investments; at one point, he even compared BlackRock to a cartel for “foist[ing] ESG agendas onto corporate boards”.
Donald Trump Jr.
Donald Trump Jr. recently announced he is joining 1789 Capital, an anti-ESG venture firm. The firm was founded in 2023 with a focus on investing in the ‘parallel conservative economy’ and companies that have been negatively impacted by trends in ESG investing. Trump Jr. currently serves as honorary co-chair of his father’s transition team and has aligned himself with influential billionaires that have repeatedly attacked corporate ESG practices.
SEC Rule
The incoming Trump Administration is expected to overturn the U.S. Securities and Exchange Commission’s rule requiring publicly traded companies to disclose their climate risks. This rule has been criticized by conservatives as a “threat to economic opportunity” and “federal oversight as its worst,” while the Sierra Club and NRDC said the rule didn’t go far enough.
Both sides immediately sued to block the rule, and congressional Republicans introduced legislation to overturn it. Since then, the environmental groups have dropped their lawsuit, the oil and gas lawsuits are ongoing, and time has run out on congressional efforts to block the rule.
According to Data for Progress, two-thirds of voters (80% of Democrats, 65% of Independents, and 55% of Republicans) support the SEC’s rule.
Department of Labor’s ‘ESG’ Rule
In 2022, the Department of Labor issued a rule under the Employee Retirement Income Security Act (ERISA) that allows pension fund managers to consider ESG factors when they select retirement investments and exercise shareholder rights, like proxy voting. More than two dozen Republican Attorneys General, co-filed by Liberty Energy (reminder: Liberty Energy’s CEO is Trump’s nominee for Secretary of Energy) and energy trade group the Western Energy Alliance, sued to block the rule. That lawsuit is ongoing.
According to Data for Progress, 71% of voters said they were likely to support responsible investing after learning more about the investment practice.
State-Based Efforts
Signaling what’s to come in 2025, more than 160 pieces of anti-ESG legislation have been introduced at the state level in 2024. While only six of these bills have passed, many will serve as model legislation uplifted by the American Legislative Exchange Council (ALEC) that could damage the ESG movement in several ways.
Most notably, these bills block states and local governments from doing business with financial institutions that either limit their involvement in extractive industries or promote clean energy. They threaten financial institutions with civil liability if they are found to “discriminate in providing financial services” based on a “social credit score.” Finally, these bills limit pension funds’ proxy voting activity in an attempt to silence shareholder voices who may push for ESG investments.
According to GSG polling, voters overwhelmingly oppose banning ESG.
While we expect to see continued attacks on ESG, many investors will stay the course in considering ESG as part of their fiduciary responsibility to mitigate risk and maximize opportunity, noting that it makes good business sense.
To read GSG’s recommendations on navigating the politics of ESG, check out our 2024 Business and Politics Report.
