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Republican Attacks on ESG Will Restrict Impact Investing in US, Adviser Says

  • Some funds are preparing dual pitches for political landscape
  • Republican Party’s anti-ESG campaign has industry mobilizing
Lithium And Geothermal Power Projects In California's Imperial Valley
Photographer: Bing Guan/Bloomberg
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A wave of political attacks on ESG that have led to changes in legislation across several Republican states will probably “restrict” impact investing in the US, according to hedge fund adviser NorthPeak.

In an analysis sent to clients and seen by Bloomberg, NorthPeak characterized an anti-ESG campaign led by key GOP figures as resting on a misconception of the investment model. The paper, titled The Perversion of the ESG Label, called the “ferocity and scale” of the criticism “unprecedented,” and urged funds to step up efforts to educate stakeholders as part of a coordinated plan to defuse tensions.