Does Biden Signal A Green Light For Green Finance?
With arresting brevity last month, Joe Biden laid out his presidential priorities. “Stinging inequity, systemic racism, a climate in crisis.” Eight words of an inaugural speech that reverberated worldwide; a mission statement that marked a sea-change in America’s approach to sustainability.
For the global Environmental, Social, and Governance (ESG) community, the president could scarcely have hit a more hopeful note. After four years in the shade, his message was clear: from now on, you’ve got a friend at the top.
That Biden’s predecessor was no ally of impact investors, there’s little question. Donald Trump flirted with climate denial, encouraged fossil fuel expansion, and dragged America from global carbon commitments.
And yet, in recent years, socially responsible investment has rocketed, driven by shareholder activism and boardroom resolve. The last twelve months have seen a particular shift towards the application of non-financial factors, with ESG funds outperforming the wider market.
Now, with President Biden squarely behind sustainable business, a further boom in eco-investment seems certain.