· 5 min read
Dear all,
A silent ESG world. Beaten. Subdued. Coerced.
If you listen carefully, you can hear… not much. Silence is doing its dirty work.
I remember, a couple of years ago, there were three to four ESG conferences in Europe and across the rest of the world — every month. Panels, experts, presentations, proclamations, commitments. VIP sessions, workshops, education modules. London, Paris. New York, Tokyo.
All these people in the “ESG & Sustainability” space — experts, leaders, heads, directors, executive presidents. All those endless words.
Did they mean anything? Was there any substance in all of it?
Why so much fear? Why so silent?
Do you think keeping your head down until this farce blows over is a smart and rational strategy? Do you believe there's no point in arguing right now anyway?
Some even think all of this will be over in four years, once the current U.S. administration has demolished a large part of the world.
Well, the bad news is: this is just another round you’ve got to go through. It’s a far more brutal, rougher round — and it’s going to hurt. A lot.
The good news? What you’ve done so far has clearly left a significant mark on the unsustainable economic model we’re running this world on. A small mark, yes — but one with huge potential.
Now, more than ever, you know and see what you’re up against: the power, the deception, the outright lies, the coercion.
You can feel the cold fingers slowly choking what you’ve worked for — what you’ve spent years developing.
These forces have always been there, lurking in the shadows, biding their time, waiting for the right moment. Agreeing, but never really believing. Supporting, but never truly invested.
Ten years ago, Sustainability and ESG were outsiders. Now, they are adversaries. That means something. Even if it hurts.
And it’s something worth fighting for.
You are not alone. You are not marginalized. You are not supposed to keep your head down.
Reach out. Organize. Engage.
And above everything else: speak up.
The real story is not “ESG this and that.” The real story is something else entirely…
A startling revelation about the criticisms surrounding ESG investing is that they often stem from political and ideological concerns — not from actual financial performance.
The real issue isn't the returns of ESG investments. It’s the staggering amounts of capital still funneled into activities that harm our planet and jeopardize our future.
This is the story they don’t want you to hear — or even think about.
Traditional investment strategies are primarily designed to maximize returns, often ignoring the external impacts of those decisions. To put it plainly: profits are privatized, while environmental and social costs are socialized.
You end up paying these costs — through your taxes and through a declining quality of life. The consequences of climate change — droughts, storms, flooding, rising insurance premiums—these are costs you bear, not mainstream investors. Every single day, your investments, savings, and pension may be contributing to this damaging cycle. Around the clock.
This happens because you may not be aware of it, don’t have access to the necessary information, or find it hard to change how your money is managed. Even if you do have the knowledge, taking action can feel overwhelming. Your pension might be locked into a structure beyond your control. Changing your savings strategy might incur penalties. Or perhaps, there just aren’t enough viable alternatives.
Meanwhile, mainstream investing continues to support companies that engage in unsustainable practices — resource extraction, pollution, labor exploitation. These practices not only deplete our natural world but also deepen social inequalities.
Despite the growth of ESG investing, it still represents a tiny fraction of global investment compared to the vast sums flowing into harmful industries — industries that actively lobby to weaken regulations designed to protect you and your loved ones. And they're good at it.
Institutional investors — pension funds, mutual funds, insurance companies — play a pivotal role in shaping the investment landscape. Yet many of them still allocate funds to industries fueling environmental and social degradation. Why? Because the pressure to deliver returns for beneficiaries often breeds a reluctance to divest from fossil fuels and other damaging sectors.
That’s why investing in sustainability, ESG, or impact solutions isn’t just a financial decision. It’s a powerful act of accountability. It’s a way of protecting the externalities essential to our survival — if done thoughtfully.
So when someone — whoever they are — questions ESG, sustainability, or impact investment solutions, ask them this:
Do traditional investments account for the damage they cause?
Do they account for the costs that you are paying?
Let’s make one thing crystal clear: ESG was NEVER big in the U.S.
The so-called backlash against ESG and sustainability investing in the U.S. is a farce.
It’s part of a false and contagious narrative driven by the new U.S. administration. And it’s cunning.
By overplaying the so-called “wokeness” of these investment strategies, they have manufactured panic across financial markets. That was the goal.
And as we know — markets are herd animals.
Yes, many ESG and sustainability strategies have underperformed. But so have many mainstream, non-ESG strategies. For example, where is the backlash against actively managed funds that charge high fees and deliver benchmark returns?
When is the “ripping off clients” backlash going to happen?
To everyone working in this space: The fight for the next phase of ESG and sustainability investing will not be won in the U.S. It will be won in Europe and the rest of the world.
This article is also published on Substack. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
