Viñes Fiestas: ‘the anti-ESG backlash has not impacted climate-related investments’

The anti-environmental, social and governance (ESG) movement has not made a sizable impact on climate related investments, the chair of the EU Platform on Sustainable Finance has said.

Speaking at the Reuters Impact 2023 conference, Helena Viñes Fiestas told delegates that the growing movement in the US is “a reaction to the success of ESG because if it hadn’t been successful and impactful then it [the anti-ESG movement] wouldn’t exist”.

While the anti-ESG movement in the US has influenced several states to propose or enforce legislation that pushes back on ESG-based investing.

Viñes Fiestas, who is also the commissioner of the Spanish Financial Markets Authority, stated that anti-ESG proposals “haven’t made an impact on investments” towards climate change.

While the anti-ESG movement is trying to stop shareholders proposals on ESG issues, data showed that “more than 50% of these proposals are on social issues, such as human rights”, with less push back on climate proposals.

Impact on investor engagement

However, Viñes Fiestas explained that the anti-ESG movement has led to a drop in shareholder engagement, especially among US institutional investors. 

“It has made an impact on the announcements or groups that investors have created, such as the Net Zero Insurance Alliance (NZIA) and Net Zero Asset Owner Alliance (NZOA), where investors are concerned of being accused of anti-trust breaches,” she said.

Investor coalitions on climate such as the NZIA, NZOA and the Net Zero Banking Alliance have faced a series of departures of prominent members in response to potential legal threats by anti-ESG pressure groups.