Notable figures in America’s corporate circle are endorsing Environmental Social Governance (ESG) investing and persuading others to divest from Israel, reveals economist and author Charles Gasparino. He identifies an ascent in ‘proxy’ drafts aimed at corporate administration in major U.S. corporations. These drafts generally emerge ahead of annual shareholder meetings. His inference implies a rising shareholder predilection for ESG investing, an investment approach that integrates environmental, social, and governance considerations alongside financial return.
The call for divestment from Israeli companies is becoming more pronounced, likely due to various controversies surrounding Israel’s political scene. The move toward ESG investing and away from Israel is met with both jubilation and criticism, the former arguing for ethical investment, the latter worrying about political polarization and effects on U.S.–Israel economic relations.
Furthermore, ESG investing pushes corporations to be responsible in their operations. Trends indicate not just a target to enhance shareholder value, but various other requests. Gasparino cites the instance of energy companies being nudged to invest in windmills, which has triggered inflationary concerns. The hefty investment requirement in sustainability like windmills could tighten corporate financial resources, raising product prices and impacting consumers.
Despite the performance of ESG investing that failed to generate hefty returns, recent times observe increased shareholder drafts discussing Israeli business partnerships, supported by multinational corporations such as Amazon, Raytheon Technologies, and Lockheed Martin. These companies embody the considerable influence of ESG investing as they strive for good governance, environmental sustainability, and social responsibility in their foreign business affairs.
These corporations employ euphemistic language to steer clear of anti-Israel sentiments. For instance, Amazon’s proposed proxy vote for 2024 hints at potential human rights violations corresponding with their relationship with the Israeli government but does so without explicitly blaming Israel. Similarly, Netflix’s upcoming ballot for the same year also employs strategic wording, subtly suggesting issues with their collaboration with the Israeli authorities to avoid controversy.
Proposals like “Amazon Web Services (AWS) caters to numerous governmental clients known for human rights infringements,” citing the Israeli government, are becoming more common. This points to the strategic use of language to guard against explicit criticism while sending a clear message to investors about potential ESG risks, seemingly a major driving factor behind evolving ESG investing trends.
