Explore the debate over the ESG label through Beyond Governance’s commentary on BlackRock. The paper considers whether disagreement about terminology changes the underlying issues facing boards.
Free PDF · 4 pages · Archived commentary
By Beyond Governance
- Understand the argument at the centre of the paper
- Separate the terminology debate from the underlying subjects
- Use the perspective to prompt a board or governance discussion
The debate behind the ESG label
The language used to discuss environmental, social and governance matters can itself become a point of disagreement. That raises a separate question for boards about the issues they need to understand and oversee.
Is ESG Dead? A BlackRock Thematic examines this distinction through the debate surrounding BlackRock and Larry Fink’s use of the ESG label. The paper argues that the underlying considerations remain relevant even when the terminology is contested. It is archived commentary on that debate, rather than a statement of BlackRock’s current position.
What the commentary covers
The rise of ESG investing
Read the paper’s account of how environmental, social and governance considerations became prominent in investment discussion.
Scrutiny and political disagreement
Explore the criticism and competing interpretations surrounding the ESG label as described in the paper.
The BlackRock discussion
Consider the commentary on Larry Fink’s move away from the term and the argument BG draws from it.
The underlying governance questions
Examine the paper’s view that changing language does not remove the need to consider the subjects behind the label.
Who should read it
Directors, company secretaries and governance professionals interested in the ESG debate and how its terminology can influence discussion within an organisation.
The argument in the paper
The commentary distinguishes disagreement over the term ESG from the environmental, social and governance considerations themselves. Its central argument is that the latter still deserve attention, whatever language is used.
Why download the commentary
It offers a short perspective to discuss with colleagues when a debate about terminology is obscuring the actual matters under consideration. The download preserves the argument in its historical context.
How to use it
Read it as a discussion paper and identify the argument you agree with or would challenge. Use current sources separately when assessing reporting obligations or an institution’s present position.
Download the BlackRock thematic
Read the commentary and consider what sits behind the ESG terminology debate.
Related resources
An Internal Audit Checklist for Corporate Governance
Further support
Explore our ESG and sustainability governance service for support with oversight structures and reporting arrangements.
