The Co-option of Climate Change by ESG and its ALREADY Detrimental Impacts on the Developing World

Abstract

Today’s paper examines how momentum behind climate change action has been co-opted by ESG (Environmental, Social, Governance) frameworks in ways that disproportionately harm developing nations. We analyze the historical dynamics that allowed this co-option to occur and posit several potential negative outcomes for vulnerable populations if left unaddressed. Case studies of early damages are explored, along with parallels to previous episodes of exploitation. Potential corrective strategies are proposed to realign climate change efforts with equitable outcomes, especially for frontline communities in the developing world.

Introduction

Climate change activism arose from grassroots environmental advocacy and scientific research on the unfolding planetary crisis. Over time, climate action entered the corporate mainstream through sustainability initiatives as societal concern grew. Most recently, climate change priorities have been subsumed under the umbrella of ESG (Environmental, Social, Governance) – investment frameworks that grade corporations on these metrics. This paper argues that the evolution of climate change from radical grassroots movement into a monetized ESG agenda risks disproportionately harming developing…