The Decibel How Canadian companies are responding to the ESG backlash
Feb 25, 2025
Jeffrey Jones, an ESG and sustainable finance reporter for The Globe, dives into the rising concerns surrounding environmental, social, and governance (ESG) factors. He discusses the backlash against DEI initiatives in the U.S. and its influence on Canadian companies, particularly banks, which are reassessing their climate commitments. Additionally, he explores new legislative changes in Canada, like Bill C-59, and the implications of moving towards mandatory sustainability reporting. Will this pressure alter the ESG landscape in Canada?
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ESG Evolution
- ESG's roots trace back to the 1970s with ethical investing, evolving through sustainable and responsible investing.
- It gained prominence in the last five years due to increased awareness of social and environmental issues.
ESG and Societal Awareness
- The pandemic and George Floyd's killing heightened awareness of societal vulnerabilities, accelerating ESG's rise.
- Companies responded by appointing chief sustainability officers and diversity executives.
ESG Backlash
- Backlash against ESG began in the U.S. in late 2022, driven by Republican-led states with fossil fuel interests.
- ESG became enmeshed in the U.S. culture war, labeled as "woke" alongside critical race theory.