{"id":1719104,"date":"2022-11-01T06:04:05","date_gmt":"2022-11-01T10:04:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1719104"},"modified":"2022-11-01T06:19:11","modified_gmt":"2022-11-01T10:19:11","slug":"ceos-cutting-back-or-pausing-their-esg-efforts","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ceos-cutting-back-or-pausing-their-esg-efforts\/","title":{"rendered":"CEOs Cutting Back or Pausing Their ESG Efforts"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fceos-cutting-back-or-pausing-their-esg-efforts%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1719104&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><span data-contrast=\"auto\">Despite U.S. companies championing their environmental, social, and governance (ESG) investments and results, many others are planning to suspend or reconsider their ESG efforts in the coming months over growing recession fears, according to a new <a href=\"https:\/\/info.kpmg.us\/news-perspectives\/industry-insights-research\/kpmg-ceo-outlook-2022.html#:~:text=91%25%20believe%20that%20there%20will,preparation%20for%20a%20potential%20recession.\">report<\/a>.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In August, <a href=\"https:\/\/www.theepochtimes.com\/t-kpmg\">KPMG<\/a> published an in-depth report titled \u201c2022 U.S. CEO Outlook.\u201d It assessed a wide variety of issues facing businesses over the next 12 months, including economic turbulence, finding and retaining talent, and technological developments. The paper also looked at the ESG trend sweeping America and the rest of the world.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The authors of the report noted that a majority of CEOs (79 percent) think the public will look to the private sector to address major social challenges rather than governments, be it climate change or income inequality. But while this form of social investing has become integral in the private marketplace, organizations acknowledged that there is a demand for increased reporting and transparency on ESG issues, particularly as more of the public becomes skeptical over \u201cvirtue signaling\u201d and \u201cgreenwashing.\u201d<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The former consists of a business expressing a specific moral viewpoint to communicate an impeccable character, typically one that favors an establishment talking point. The latter is when consumers are deceived into thinking a company\u2019s products are environmentally friendly or socially responsible.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<figure id=\"attachment_4816008\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/10\/24\/Factories-of-Keihin-Industrial-Area-in-Japan-1200x858.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4816008\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Factories-of-Keihin-Industrial-Area-in-Japan-600x429-1.jpg\" alt=\"Climate Change And Global Pollution To Be Discussed At Copenhagen Summit\" width=\"600\" height=\"429\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4816008\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Factories-of-Keihin-Industrial-Area-in-Japan-600x429-1.jpg\" alt=\"Climate Change And Global Pollution To Be Discussed At Copenhagen Summit\" width=\"600\" height=\"429\" \/><\/noscript><\/figcaption><\/a> Fumes emit from factories of Keihin Industrial Area in Kawasaki, Japan, on Dec. 1, 2009. (Koichi Kamoshida\/Getty Images)<\/figure>\n<p><span data-contrast=\"auto\">But the key finding from the report was that 59 percent say they \u201cplan to pause or reconsider their ESG efforts in the next six months\u201d to help prepare for the anticipated recession.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The report suggested that diminishing investment in ESG strategies \u201cmay lead to long-term financial risk,\u201d as a possible recession tests CEOs\u2019 commitment to the latest craze in Corporate America. Seventy percent of CEOs noted that ESG has improved their firms\u2019 financial performance.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cAs CEOs take steps to insulate their businesses from an upcoming recession, ESG efforts are coming under increasing financial pressure,\u201d said Jane Lawrie, global head of corporate affairs at KPMG.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Eighty percent of CEOs expect a recession within the next 12 months, according to the KPMG survey.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<h2><span data-contrast=\"auto\">Is ESG Still a Priority?<\/span><\/h2>\n<p>Central banks worldwide have abandoned their pandemic-era easy-money policies, with market experts warning that these tightening efforts will lead to an economic downturn in either 2023 or 2024. This type of climate will make borrowing more expensive, forcing companies and investors to tighten their belts and be more conservative with their dollars and cents.<\/p>\n<p>Will ESG still remain a top priority for businesses and traders in such a fiscally prudent environment?<\/p>\n<p>While speaking at CNBC\u2019s Delivering Alpha Conference in September, Lauren Taylor Wolfe, Impactive Capital co-founder and managing partner, explained that financial performance is the chief objective for companies.<\/p>\n<p>\u201cWe believe that ESG without returns is simply not sustainable,\u201d she said. \u201cWe are exclusively focused on risk-adjusted returns.\u201d<\/p>\n<p>Meanwhile, a broad array of studies points to greater skepticism and less enthusiasm over everything related to ESG.<\/p>\n<p><span data-contrast=\"auto\">A recent <a href=\"https:\/\/capital.com\/new-survey-retail-investors-turn-away-from-esg-investing-due-to-lack-of-knowledge-and-price-sensitivity\">Capital.com poll<\/a>, for example, found that investors and traders are not prioritizing ESG. The online brokerage firm\u2019s research indicated that 52 percent never picked a stock based on ESG factors. Nearly half (46 percent) reported not knowing how to do so, while 12 explained that ESG investments were too expensive.<\/span><span data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p><span class=\"TextRun SCXW97571213 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW97571213 BCX0\">A separate <a href=\"https:\/\/ninetyone.com\/en\/newsroom\/planetary-pulse-are-asset-owners-ready-to-finance-a-transition-to-net-zero\">survey<\/a> from global investment manager <\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW97571213 BCX0\">Ninety One<\/span><span class=\"NormalTextRun SCXW97571213 BCX0\"> discovered that 55 percent say the risk and return performance of their holdings remained the chief concern. Interestingly enough, 40 percent of asset purport that investing in funds related to ESG goals, such as climate change, will cause a reduction in their returns.<\/span><\/span><span class=\"EOP SCXW97571213 BCX0\" data-ccp-props=\"{\" 201341983=\"201341983\">\u00a0<\/span><\/p>\n<p>Many states across the country, including Florida, Arizona, North Dakota, West Virginia, and Kentucky, have rejected ESG strategies, divesting billions from financial institutions that make investment decisions based on the system. Wall Street appears mixed on the issue, with 45 percent of CFOs telling a <a href=\"https:\/\/www.cnbc.com\/2022\/09\/29\/the-esg-backlash-inside-the-executive-ranks-at-top-corporations.html\">CNBC survey<\/a> that they supported the moves. Thirty percent stated they were neutral, while 25 percent opposed these decisions.<\/p>\n<p>\u201cI think the criticism is deserved,\u201d Wolfe added.<\/p>\n<p>Last week, Strive Asset Management, led by activist investor Vivek Ramaswamy, <a href=\"https:\/\/www.youtube.com\/watch?v=4q1Yjh7l98o\">launched<\/a> a nationwide campaign that aimed to \u201cpromote excellence over ESG priorities.\u201d The initiative suggests that some of the world\u2019s largest companies, such as Amazon, Citigroup, ExxonMobil, and Home Depot, maintain \u201cuntapped potential\u201d that could be unleashed if they were not beholden to ESG.<\/p>\n<p>\u201cEveryday Americans have extraordinary yet unrealized power at their fingertips,\u201d said Ramaswamy in a <a href=\"https:\/\/ca.finance.yahoo.com\/news\/promoting-excellence-over-politics-corporate-113000692.html\">statement<\/a>. \u201cThey don\u2019t just vote as citizens at the polls in two weeks. They vote every day with their investment dollars, which are too often used by other asset managers to inject political agendas into corporate America\u2019s boardrooms.\u201d<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-moran\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_AndrewMoran.jpeg\" alt=\"Andrew Moran\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of &#8220;The War on Cash.&#8221;<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Despite U.S. companies championing their environmental, social, and governance (ESG) investments and results, many others are planning to suspend or reconsider their ESG efforts in the coming months over<\/p>\n","protected":false},"author":1,"featured_media":1719107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1719104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1719104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1719104"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1719104\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1719107"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1719104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1719104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1719104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}