ESG investing: From virtuous choice to vital obligation
Translated from French and summarized by DistantNews. Read the original for the full story.
At a glance
- Responsible investment, once framed as an ethical choice for activist investors, has moved into the mainstream as climate risks and regulation have intensified.
- The Trump administration and enthusiasm for artificial intelligence contributed to a major retreat from ESG investing after the 2010s boom.
- A summer heatwave has renewed the argument that sustainability is a lasting necessity rather than a passing fashion.
Responsible investment was once viewed as a commendable ethical choice, but largely as one for activist investors. Some critics mocked it or dismissed it as “wokism,” suggesting it could appeal only to vegans in Birkenstocks or long-haired anti-globalization activists.
That perception began to change as the Intergovernmental Panel on Climate Change issued increasingly serious projections and the number of climate conferences grew. The wider public became more aware of the stakes, while governments began acting through ambitious investment plans, specific commitments to cut carbon emissions and binding regulations.
Investors also entered the debate. The movement’s early idealism gave way to a more practical question: how should capital respond to climate risks and the policies designed to address them?
wokism
The momentum later weakened. The Trump administration and enthusiasm for artificial intelligence triggered a major retreat from ESG investing after the enthusiasm of the 2010s. Yet this summer’s heatwave has brought the issue back into focus.
Sustainability, the article argues, is not a passing trend. It has moved from a virtuous option to a vital obligation.
veganes in Birkenstocks or long-haired anti-globalization activists
Originally published by Le Temps in French. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.