JPMorgan Executive Says US Backlash Against ESG Is
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Posted On: 10/09/2024 5:08:43 PM
JPMorgan Executive Says US Backlash Against ESG Is Exaggerated
An executive at JPMorgan recently stated that the backlash against issues related to environmental, social and governance (ESG) in the United States was overstated. Chuka Umunna, the company’s global head of sustainable solutions, explained during an Energy Transition conference that the weaponization of the term “ESG” and the backlash that followed had little effect on the growing green economy of the U.S.
He added that while some investors and companies didn’t discuss sustainability as much, they were still moving money in a way similar to their peers in Europe. Umunna noted that investors in the U.S. may not have been using the labels in the same way that their counterparts in Europe were, but their operations on ESG weren’t so different.
A group of investors based in the United States, including JPMorgan’s fund arm, have withdrawn from international climate coalitions in 2024 amid a tense political background. This comes after some GOP politicians argued that membership could violate antitrust regulations.
Umunna explained that many international clients of JPMorgan’s fund arm preferred to stick to one investment stewardship policy globally. Despite this, Umunna revealed that less than 2% of anti-ESG initiatives proposed during the proxy-voting season were approved. This included a pair of anti-ESG bills that would restrict managers of pension funds from considering factors such as ESG and limit the ability of the U.S. Securities and Exchange Commission (SEC) to require new disclosures.
At the state level, less than 10% of anti-ESG resolutions that were proposed were approved. For instance, legislators in Florida enacted a law that would require the state’s CFO to make investment decisions based only on pecuniary factors, without considering any social or ideological interests.
Umunna noted that the major challenges facing companies in the real economy of the U.S. that sought support from back loans or investments included high rates of interest, issues in their supply chains and inflation.
The Reuters Energy Transition Europe 2024 conference ran from Sept. 30–Oct. 1, 2024. The conference, which was held in London, brought together more than 250 of the most senior executives from the finance, utilities, energy, and government sectors on the continent to identify avenues for investment, drive business-model innovation and execute a low-carbon strategy that delivers return on investment.
The focus was on laying the foundations of a net-zero future while moving away from market turbulence. Here, stakeholders discussed new ways to reinvent their business models and bring about growth through rapid decarbonization, synchronization of supply chains, cross-sectoral collaboration and technology enhancement.
The ideas shared during such conferences could be beneficial to different companies, such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF), that are seeking to deepen the incorporation of ESG principles in their operations and value chains.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
An executive at JPMorgan recently stated that the backlash against issues related to environmental, social and governance (ESG) in the United States was overstated. Chuka Umunna, the company’s global head of sustainable solutions, explained during an Energy Transition conference that the weaponization of the term “ESG” and the backlash that followed had little effect on the growing green economy of the U.S.
He added that while some investors and companies didn’t discuss sustainability as much, they were still moving money in a way similar to their peers in Europe. Umunna noted that investors in the U.S. may not have been using the labels in the same way that their counterparts in Europe were, but their operations on ESG weren’t so different.
A group of investors based in the United States, including JPMorgan’s fund arm, have withdrawn from international climate coalitions in 2024 amid a tense political background. This comes after some GOP politicians argued that membership could violate antitrust regulations.
Umunna explained that many international clients of JPMorgan’s fund arm preferred to stick to one investment stewardship policy globally. Despite this, Umunna revealed that less than 2% of anti-ESG initiatives proposed during the proxy-voting season were approved. This included a pair of anti-ESG bills that would restrict managers of pension funds from considering factors such as ESG and limit the ability of the U.S. Securities and Exchange Commission (SEC) to require new disclosures.
At the state level, less than 10% of anti-ESG resolutions that were proposed were approved. For instance, legislators in Florida enacted a law that would require the state’s CFO to make investment decisions based only on pecuniary factors, without considering any social or ideological interests.
Umunna noted that the major challenges facing companies in the real economy of the U.S. that sought support from back loans or investments included high rates of interest, issues in their supply chains and inflation.
The Reuters Energy Transition Europe 2024 conference ran from Sept. 30–Oct. 1, 2024. The conference, which was held in London, brought together more than 250 of the most senior executives from the finance, utilities, energy, and government sectors on the continent to identify avenues for investment, drive business-model innovation and execute a low-carbon strategy that delivers return on investment.
The focus was on laying the foundations of a net-zero future while moving away from market turbulence. Here, stakeholders discussed new ways to reinvent their business models and bring about growth through rapid decarbonization, synchronization of supply chains, cross-sectoral collaboration and technology enhancement.
The ideas shared during such conferences could be beneficial to different companies, such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF), that are seeking to deepen the incorporation of ESG principles in their operations and value chains.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
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