In the US, the backlash against ESG is driven by its politics, and is wobbling. In India this shift to ESG is driven by regulators and is accelerating.

Politicians seldom debate market and investment policies. True, they question the influence the ruling dispensation has had on investment decisions - and have done so since Hari Mundhra scandal in 1957. Or when they smell blood, like with Harshad Mehta, Ketan Parekh and Hindenburg, compelling regulators to review market mechanisms. Occasionally, they may debate something like the old pension scheme versus the new, but since this is mainly about pension benefits of retired government servants it really is not a real ‘debate.’ But for the most, political parties steer clear on questions like should we shift to a T+2 or a T+1 settlement cycle or what constitutes a large cap stock.

Given this, the current debate on ESG (‘Environment, Social and Governance’) in the United States is noteworthy.

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