In The Economist, Joshua Lichtenstein Examines ESG Impact on America’s Culture Wars
U.S. political polarization in Republican and Democratic led state governments have created challenges that make it hard for companies to apply a one-size-fits-all regulatory policy. Different state governments have different views as to what kinds of regulations ought to be promoted.
In The Economist, Joshua Lichtenstein, a partner in the employment, executive compensation and employee benefits department and head of the firm’s ERISA fiduciary practice, explained that states are introducing contradictory regulations about oil, gas and coal investments. These initiatives are linked to Democratic support for ESG and Republican hostility to any non-pecuniary investment considerations. Joshua said compounding the problem is that doing business in the European Union may require sustainability reporting, which is disliked in parts of America. The Economist article cited the firm’s ESG state legislation tracker.