The Game Continues
In March 2022, the U.S. Securities and Exchange Commission (SEC) introduced a proposal requiring U.S.-listed companies to disclose climate-related information, coming ten days earlier than the draft disclosure standards issued by the International Sustainability Standards Board (ISSB).
However, while the ISSB has launched its finalized standards about half a year ago after consultation and revisions, the SEC is still evaluating its own regulation.
The Impact of Major Corporations on U.S. ESG Policy; Source: InfluenceMap
A report released in October 2023 by the nonprofit think tank InfluenceMap noted that some large U.S. corporations are lobbying through industry groups to limit the progress of ESG policies. The report found that several industry organizations, including the U.S. Chamber of Commerce, the Bank Policy Institute, and the American Petroleum Institute, have actively engaged with Republican members of the U.S. House of Representatives to lobby against ESG policy development. Members of these organizations include major companies and financial institutions like Amazon, Johnson & Johnson, Citibank, and Walmart.
Nevertheless, the SEC recently stated that several ESG-related regulations, including climate information disclosure requirements, would be released before April 2024.
Since mid-2022, some Republican-led regions in the United States have sanctioned certain financial institutions on the grounds of "boycotting the fossil energy industry," leading to the "anti-ESG" wave in the U.S. As a result, major international financial institutions have, over the past year, somewhat weakened the role of ESG factors in product configuration and market promotion while maintaining a basic positive attitude towards ESG investment principles.
ESG has recently become a focal point of debate between the two U.S. political parties. Unlike the Republican Party, which is known for its anti-ESG stance, the Democratic Party relatively supports the development of ESG investments. In 2022, U.S. President Joe Biden, a Democrat, passed the Inflation Reduction Act, which includes $369 billion in subsidies for renewable energy and energy efficiency sectors. In November this year, the United States will hold a presidential election, and former President Donald Trump, a Republican who plans to run again, has stated through his campaign advisors that, if elected, he would significantly reduce the scale of subsidies included in the act.