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   [1]https://www.instagram.com/p/CmoPunuOZjc/?utm_source=ig_web_button_sh
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   bloomberggreen
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    It may be hard to imagine that ESG, now a hotly debated topic in
   American politics, traces its roots back to a former UK tabloid
   reporter and a 45-minute meeting in a fifth-floor office in Geneva.
   There, he and a small team of United Nations staffers coined in 2004
   what’s now become one of the most controversial acronyms in finance.
   Their aim was to get investors and bankers to weigh key risks such as
   the earth’s rising temperatures, labor disputes and corporate
   malfeasance, and determine their impact on profits.
   Using the language of the capital markets — risks and opportunities —
   ESG was meant to pivot away from socially responsible investing and
   appeal to Wall Street.
   But then ESG morphed into a label that was everywhere, and it came to
   mean different things to different people. The three letters were added
   to stock funds, bond issues, corporate ratings and Wall Street
   derivatives worth trillions of dollars, creating confusion and
   disagreement that left the acronym vulnerable to attack.
   First, industry insiders criticized environmental, social and
   governance investing claims for being little more than a marketing
   gimmick. Regulators were next to crack down on money managers making
   hollow claims. And then the Republican onslaught began, with US
   presidential hopefuls saying ESG is something peddled by “left-wing
   radicals,” while states including Florida pulled money from BlackRock,
   Wall Street’s biggest ESG proponent.
   With the backlash reaching fever pitch, sustainable investors called
   for a course correction. Others sounded the death knell for the
   acronym.
   Bemused by the assault is Paul Clements-Hunt (pictured here), who led
   the UN team that created the ESG label more than 18 years ago. He said
   the attacks on their invention are in fact a “good thing.” Rather than
   being upset, he said he’s decided to “relax and enjoy the warring
   parties attack and defend ESG in equal measure.”
   Read our interview with him about the future of ESG at the link in our
   bio or visit: [2]bloomberg.com/green
   📷: Jose Sarmento Matos/Bloomberg
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References

   1. https://www.instagram.com/p/CmoPunuOZjc/?utm_source=ig_web_button_share_sheet
   2. http://bloomberg.com/green