ESG Investing, Jobs, and National Security

ESG funds have gained significant attention, with $2.7 trillion in assets as of March 2023, primarily in Europe. Sustainable fund inflows peaked in early 2021 but declined sharply through 2022, with US outflows in early 2023. Studies show ESG funds underperform financially. ESG-driven decision-making may distort corporate priorities and be used as a cover for underperformance. Additionally, the push for renewable energy raises concerns about US reliance on China for critical minerals, economic impacts, and national security risks.