In this week’s edition of Economy and Society:
- Germany to reestablish sustainability board
- Analysts predict European ESG bond market slowdown
- ESG opponents argue BlackRock still boycotts Texas energy
- Massachusetts takes action on ESG-related bills
- New report argues U.S. companies are maintaining or increasing ESG investments
- The Atlantic criticizes Consumers’ Research’s anti‑ESG campaign
Around the world
Germany to reestablish sustainability board
What’s the story?
The German government told media last week that the Federal Ministry of Finance will reinstate the Sustainable Finance Beirat—the board that advises the national strategy on sustainable finance—sometime this year.
Why does it matter?
The Beirat promotes environmental and social goals by advising on sustainable finance policy. Its return signals that Germany’s coalition government intends to recalibrate—rather than retreat from—its ESG commitments.
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According to ESG News:
The Sustainable Finance Beirat had played a key role in shaping Germany’s green finance landscape, offering recommendations that contributed to both national and EU-level regulatory developments. Its reinstatement signals a renewed push to align financial policy with environmental, social, and governance (ESG) objectives—especially critical as Europe prepares to deepen its climate commitments and green economic transition. …
The Sustainable Finance Beirat (SFB) is Germany’s official Sustainable Finance Advisory Committee—an independent, multi-stakeholder body set up by the federal government to shape and support its sustainable finance strategy. It brings together experts from the financial sector, real economy, academia, and civil society to advise on how to build Germany into a leading center for sustainable finance, balancing financial stability with environmental and social goals.
Analysts predict European ESG bond market slowdown
What’s the story?
Analysts at Dutch bank ABN AMRO NV reported last week that ESG bond issuance in Europe is “expected to considerably lag in 2025.” They’ve revised their forecast from €266 billion to approximately €247 billion—about 10% below the €272 billion issued in 2024.
Why does it matter?
The analysts argue political pushback in the U.S. and ongoing ESG rule changes in the EU are key factors reducing demand, suggesting reputational and regulatory pressures—not just market conditions—are driving the slowdown.
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According to Bloomberg:
Interest in financial products claiming to target environmental, social and governance goals is flagging amid politically motivated attacks on so-called “woke” capitalism, combined with evidence of greenwashing. The global market for ESG funds saw its worst quarter on record in the three months through March, as the broad-based backlash against the investment strategy gains ground.
The ABN Amro analysts pointed to US President Donald Trump’s decision to declare a national energy emergency as a key reason for the decline, with policies in the world’s largest economy now “prioritizing fossil fuels over clean energy initiatives,” they wrote. …
At the same time, efforts in Europe to simplify ESG rules “suggest that both regulators and companies worldwide might be scaling back their climate ambitions,” the analysts said.
In the states
ESG opponents argue BlackRock still boycotts Texas energy
What’s the story?
Consumers’ Research (CR), a nonprofit critical of ESG investing, and the American Energy Institute (AEI), an energy advocacy group, released a report arguing BlackRock, the world’s largest asset manager, is still boycotting Texas energy.
Why does it matter?
The report contradicts BlackRock’s claims and those made by former Texas Comptroller Glenn Hegar (R), who earlier this summer removed the company from the state’s list of financial firms ineligible for government contracts. Hegar argued BlackRock had distanced itself from ESG pledges and no longer met the definition of a prohibited company.
CR and AEI argue the firm’s shareholder voting, investment practices, and involvement in ongoing lawsuits over alleged anti-fossil-fuel collusion show continued boycott behavior.
What’s the background?
See here for more on Hegar’s decision and background on Texas’s anti-ESG law.
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According to The Center Square:
Their joint report points to BlackRock’s voting rules that push companies to set so-called “science-based” net-zero emissions targets; these goals aim to phase out fossil fuels by 2050.
“It’s important, because as they try to escape the consequences of those actions, people need to be served by all the facts,” Will Hild, executive director of Consumers’ Research, told The Center Square in a phone interview. “This report puts an end to the mess that BlackRock is currently spreading – that they’ve corrected or ended their actions boycotting or punishing the oil, gas and other industries they think need to eliminate their carbon emissions.”
The report also says BlackRock supports shareholder proposals that would restrict fossil fuel use and even impact farming and cattle production. It notes that BlackRock still refuses to invest in many coal companies and is being sued by the Texas Attorney General over claims it is working with other firms to limit fossil fuel production.
Massachusetts takes action on ESG-related bills
One state (Massachusetts) took action on eight ESG-related bills last week (since July 15). No bills advanced from one chamber to another, passed both chambers, or were enacted.
States with legislative activity on ESG last week are highlighted in the map below. Click here to see the details of each bill in the legislation tracker.
On Wall Street and in the private sector
New report argues U.S. companies are maintaining or increasing ESG investments
What’s the story?
A new report from EcoVadis—an ESG ratings company—argues American companies are generally maintaining or increasing their ESG investments, but are discussing them less due to market and political conditions.
Why does it matter?
While some critics argue companies are backing away from ESG, the report suggests strategic silence may be more widespread than actual rollbacks of ESG commitments.
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According to ESG Dive:
EcoVadis said the “greenhushing” occurring alongside increased investments shows many companies “see it as a behind-the-scenes lever for long-term growth.” More than 6-in-10 respondents (65%) reported viewing supply chain sustainability as a “competitive advantage,” according to the survey.
The firm surveyed executives at U.S. companies with over $1 billion in revenue who are responsible for decision-making across their company’s procurement, sustainability, supply chain, finance, risk and compliance and IT departments, according to the report and an accompanying press release.
Among executives at the director and VP level, 62% of respondents said they believe “supply chain sustainability helps attract and retain customers.” That view was shared by 59% of C-suite executives who responded.
In the spotlight
The Atlantic criticizes Consumers’ Research’s anti‑ESG campaign
What’s the story?
The Atlantic published a piece this week examining Consumers’ Research’s campaign against ESG and its ties to conservative legal strategist Leonard Leo—former vice president of the Federalist Society and current chairman of CRC Advisors. The article argues Leo’s influence is a key reason ESG has faced growing opposition from Republican lawmakers.
Why does it matter?
The article argues ESG opposition reflects a coordinated legal and political strategy, not solely market or regulatory factors.
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According to The Atlantic:
“I would hope everyone here is pretty much committed to destroying ESG,” said Will Hild, the executive director of Consumers’ Research, the organization that has led the fight. His group, he said, had spent $5 million running ads “educating consumers” about the dangers of ESG.
Hild spread a similar message at other events this spring, according to transcripts of his remarks that we obtained. “ESG is when they use their market share to push a far-left agenda, without ever having to go to voters, without any electoral accountability,” said Hild at a March meeting of state activists. “This is not the free market operating. This is a cartel. This is a mafia.” …
The key funders of such efforts include fossil-fuel-industry executives and Leonard Leo, who is best known for his leadership of the Federalist Society. In recent years, Leo has moved beyond his focus on transforming America’s courts, vowing in videotaped remarks in 2023 to take on “wokeism in the corporate environment, in the educational environment,” biased media, and “entertainment that is really corrupting our youth.”