(LibertySociety.com) – Environmental, Social, and Governance (ESG) practices have seemingly swept across the corporate world over the last few years, exacerbated by the agenda of the Biden administration. Companies have placed their compliance with reducing carbon emissions at a high level of importance, but the pay for banker and money management positions that are ESG-related is reportedly around 20% higher than the pay for other types of positions.
Revelio Labs found that the increase in salaries began in 2020, after examining around 28 million “publicly available sources” for their research. This movement coincides with the social justice explosion after the killing of George Floyd in Minneapolis, Minnesota in May 2020.
The Biden administration’s role in the increase in ESG compliance includes its Department of Labor implementing a rule that encouraged fiduciaries to make investments for retirement accounts based on whether companies had adopted ESG standards. Congress passed bipartisan legislation to override the rule, but it was vetoed by President Joe Biden. Several states in the country have also taken action to prevent the encroachment of ESG standards into public retirement accounts, even going as far as refusing to do business with companies that follow the practice.
Republicans have been the most outspoken against ESG, but some Democrats are also pushing back against it. Senator Joe Manchin, D-W.V. has publicly blasted President Biden for his decisions regarding ESG, one of many disagreements between the two as of late.
According to Edelman Trust Barometer, most workers feel that their employers are “doing mediocre or worse” when it comes to supporting social justice, particularly the issue of racism, within the workplace. One-third think that it is important to work in a diverse environment, according to a Pew Research poll.
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