Overview

• Sir Douglas Flint, chair of Aberdeen, said ESG marketing became a “huge mistake” by touting “saving the world” narratives at the expense of returns.
• He warned that ESG and diversity claims have become targets for US litigation, with firms vulnerable to lawsuits over unverified commitments.
• Morningstar data shows investors pulled a record $8.6 billion from sustainable funds in the first quarter of 2025.
• President Trump’s DEI crackdown has empowered rightwing activists to bring legal challenges against financial firms’ climate and diversity programs.
• UK consultations on green finance rules accompany a shift by firms toward pragmatic, client-driven environmental strategies.