Listen to Bennett Freeman, former US Deputy Assistant Secretary of State for Democracy, Human Rights and Labor.
This episode Frankly Speaking is focusing on the United States, where the Securities and Exchange Commission is about to issue binding rules for US companies to report on climate.
But where there's been the so-called ESG backlash, with 17 states having passed legislation banning ESG investment and where President Biden's first veto was against an attempt to block this at the federal level.
We welcome Bennett Freeman, former US Deputy Assistant Secretary of State for Democracy, Human Rights and Labor, to explain what’s happening. Bennett is also a former Senior Vice President at Calvert Investments, one of the largest responsible investors in the United States and whose many activities today include serving as Associate Fellow at the think tank Chatham House.
“The fact that ESG has come under such attack reflects the mainstream traction and momentum that it has gained. I'm reminded of a wonderful Arab or Turkic proverb: ‘The dogs bark, the caravan moves on.’ And the dogs are certainly barking in the US. But the caravan will move on with some stops, some detours now and then. But it is moving on, even in the US and certainly around the world.”
There's very little pressure being applied to companies by investors looking at how they're actually behaving and treating human rights as a core business priority. This needs to change.
Investors shouldn't just take companies' word for what they're doing; they should investigate what the companies are actually doing regarding human rights.
Germany's NewClimate Institute has produced the Corporate Climate Responsibility Monitor report, evaluating the transparency and integrity of climate pledges of 51 major companies across different sectors and geographies.
