• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        F2f student events
        Key dates
        Book distribution
        Timetables
        FAE elective information
        CPA Ireland student
      • Exams
        CAP1 exam
        CAP2 exam
        FAE exam
        Access support/reasonable accommodation
        E-Assessment information
        Exam and appeals regulations/exam rules
        Timetables for exams & interim assessments
        Sample papers
        Practice papers
        Extenuating circumstances
        PEC/FAEC reports
        Information and appeals scheme
        Certified statements of results
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Admission to Membership Ceremonies
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Audit qualification
        Diversity and Inclusion Committee
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        Student benefits
        Study in Northern Ireland
        Events
        Hear from past students
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        CPA student
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Recruitment to and transferring of training contract
      • Support & services
        Becoming a student FAQs
        School Bootcamp
        Register for a school visit
        Third Level Hub
        Who to contact for employers
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Newly admitted members
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        ACA Professionals
        Careers development
        Recruitment service
        Diversity and Inclusion Committee
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Practice Consulting services
        Practice News/Practice Matters
        Practice Link
      • In business
        Networking and special interest groups
        Articles
      • Overseas members
        Home
        Key supports
        Tax for returning Irish members
        Networks and people
      • Public sector
        Public sector presentations
      • Member benefits
        Member benefits
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        Institute Technical content
        TaxSource Total
        The Educational Requirements for the Audit Qualification
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

Knowledge Centre

☰
  • Home/
  • News/
  • Knowledge centre news item
☰
  • News
  • News archive
    • 2024
    • 2023
  • Press releases
    • 2025
    • 2024
    • 2023
  • Newsletters
  • Press contacts
  • Media downloads

Navigating the ESG crossroads

Mar 07, 2025

Dan Byrne explores the turbulent future of ESG investing as political headwinds, shifting investor priorities and global divisions challenge what was once seen as the surefire future of finance

Things are heating up around environmental, social and governance (ESG) investing—a movement that, just a few short years ago, was supposed to be the future.

For years, it seemed unstoppable, but now ESG is being tested.

This is the year of backlash, motivated mainly by the change of government in the US.

To put it simply, the Trump administration sees ESG less as the way forward and more as a punching bag. In response, some corporate giants in the US are disowning ESG or shutting up about it. Others are wondering what to do next. 

It’s the pressing question for company boards: how do they proceed from here, given the considerable hostility towards a movement that continues to attract significant investment and, in many countries, solid legal support?

The mayhem surrounding ESG

Some reports suggest that investor support for ESG proposals may be waning. 

According to a report from ShareAction, just 1.4 percent of ESG-related shareholder resolutions won majority approval in 2024. While this covers the US, it also includes the UK and EU, territories in which ESG was supposed to have strong backing. 

These resolutions are not legally binding, but they can—and often do—pressure boards into shifting their goalposts. 

One of the main drivers of the success of these ESG-related shareholder resolutions is the support of any asset managers who might have a stake in individual companies.

The ShareAction report also found that the most prominent managers in the world, including BlackRock, Vanguard, State Street, and Fidelity, backed just seven percent of these resolutions. 

It also found significant geographical discrepancies among asset managers in general, noting that those in Europe backed 81 percent of resolutions and those in the US backed just 25 percent.

These numbers hammer home the idea that ESG lives two separate lives at this point, which isn’t easy to navigate for cross-border businesses.

Future outlook

With Donald Trump back in the White House and Republicans solidifying their influence on US business, ESG is going to have an even tougher time there.

The US administration has already rolled back climate-related rules and made it harder for investors to push companies on sustainability.

Trump’s Securities and Exchange Commission leadership is shifting power from shareholders to corporate boards, which means fewer ESG resolutions making it to a vote in the first place.

Globally, the picture is different but equally puzzling.

Europe still sees ESG as essential, with regulations such as the Corporate Sustainability Reporting Directive (CSRD) making sustainability reporting mandatory. Many Asian markets are also ramping up ESG requirements, particularly in finance. 

If ESG now operates in two divided worlds, we can expect the trends in one to spill over into the other all the time, creating more headaches for anyone caught in the middle.

Advice for corporate leaders

The smartest thing corporate leaders can do right now is to read the room—focus on your stakeholders and what they want.

If your investors, customers and regulators care about ESG, it should be a priority. In this scenario, you will need the right strategy and trained talent sitting on your board who will be able to offer the proper guidance when called upon.  

However, there is no longer a universal ESG playbook—what works in Frankfurt might be poison on Wall Street. This means businesses need to take a more strategic, tailored approach.

For companies operating in multiple markets, this balancing act is even trickier. It’s not just about compliance—it’s about messaging.

How do you talk about sustainability in a way that resonates with European investors but doesn’t alienate US stakeholders? How do you maintain ESG commitments without getting caught in the political crossfire?

This is where adaptability is key. Training executives and board members on regional ESG dynamics, monitoring regulatory shifts and crafting flexible ESG strategies will be essential.

Shifting tides

The ESG landscape has diverged, and businesses can no longer afford to take a one-size-fits-all approach in this kind of mayhem.

While the movement still holds weight in many parts of the world, the political and financial headwinds emanating the US are impossible to ignore.

Corporate leaders need to be pragmatic—ESG isn’t dead, but it is no longer a guaranteed win.

The companies that succeed will be the ones that can navigate these shifting tides without losing sight of what matters most to their own stakeholders.

Dan Byrne is Content Manager with The Corporate Governance Institute

The latest news to your inbox

Please enter a valid email address You have entered an invalid email address.

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.