Policy advocacy group Inclusive Development International has launched a new website that tracks more than US$39 billion in sustainable investments flowing into companies linked with harmful ESG practices. Called ESG Watch, the platform seeks to amplify the voices of communities affected by harmful corporate activities by ensuring that firms fulfil their human rights responsibilities. Inclusive Development International said that taking a stance against ‘ESG-washing’ is now more important than ever, as the European Commission waters down reporting obligations and the US rolls back key climate legislation. “The ESG investing industry needs to be held accountable to its human rights responsibilities, even as the very notion of responsible investing is under attack from the political right,” said David Pred, Inclusive Development International’s Executive Director. “Some asset managers may be retreating from ESG labeling and rhetoric amidst these attacks, but they will continue to cater to the significant consumer demand for responsible investing options, which isn’t going anywhere. We cannot let that demand be co-opted by false solutions – no matter how they are labeled.” Companies that have been identified as having poor ESG practices include fossil fuel and mining giants facing numerous human rights complaints, weapons manufacturers implicated in war crimes, and over a dozen companies that maintain business ties to Myanmar’s military junta.
