Russia’s invasion of Ukraine called into question the wisdom of the environmental, social and governance movement’s policy centerpiece: restricting oil and gas investment. In addition to creating a hydrocarbon shortage and strengthening the Organization of the Petroleum Exporting Countries and Russia, a coordinated effort to reduce oil and gas production potentially violates US antitrust law. This combination of poor policy and legal risk would prove to be too much for profit-minded ESG supporters, and the movement would lose much of its support.
ESG standards are top-down and overwhelming for one simple reason: stifling oil and gas consumption is unpopular. In view of this political constraint, the ESG movement has focused on liberating from hydrocarbon taxation and undemocratic efforts to restrict oil and gas supply through elite institutions, particularly corporate boards. This strategy has given great results. Just look at the movement’s victory over Exxon Mobil last year.
opinion | The ESG movement is a ripe target for antitrust action
Russia’s invasion of Ukraine called into question the wisdom of the environmental, social and governance movement’s policy centerpiece: restricting oil and gas investment. In addition to creating a hydrocarbon shortage and strengthening the Organization of the Petroleum Exporting Countries and Russia, a coordinated effort to reduce oil and gas production potentially violates US antitrust law. This combination of poor policy and legal risk would prove to be too much for profit-minded ESG supporters, and the movement would lose much of its support.
ESG standards are top-down and overwhelming for one simple reason: stifling oil and gas consumption is unpopular. In view of this political constraint, the ESG movement has focused on liberating from hydrocarbon taxation and undemocratic efforts to restrict oil and gas supply through elite institutions, particularly corporate boards. This strategy has given great results. Just look at the movement’s victory over Exxon Mobil last year.