Assessing the Implications of the 2022 Midterm Elections
State officials across the country are increasingly engaged in heated debates over policies and legislation that support and oppose ESG, the approach of valuing companies based on their commitment to environmental, social and governance principles. The once obscure financial acronym is now at the center of U.S. politics
On one end of the spectrum, states like Texas and Florida are leading the anti-ESG movement denouncing Wall Street as “environmental crusaders.” On the other end of the spectrum, states such as Massachusetts and Washington are considering an array of proposals promoting investments in clean energy and addressing social and racial inequalities.
The results of the 2022 midterm elections only exacerbated these differences in ESG policy-making. With the elections in the rearview mirror, BCW and its grassroots partner agency, Direct Impact (DI), conducted an in-depth assessment of the ESG political landscape on the state level and analyzed how it will shape public policy over the next two years. One thing is clear:
In 2023, corporate America will encounter a fragmented and polarized ESG landscape across the nation’s state capitals, marked by varying levels of intensity among political leaders either embracing ESG commitments or leading the backlash.