The much-discussed “ESG backlash” is less a retreat than a consequence of success. After years of rapid inflows, critical scrutiny marks a natural phase of maturity. What matters is the financial core: ESG data is essential for assessing risks, management quality, and long-term value creation. It helps identify external sustainability risks while unlocking opportunities in areas such as the circular economy, water infrastructure, and energy security. For banks and asset managers, ESG should not be treated as a separate strategy but fully embedded in investment processes. This integration builds trust and attracts investors seeking to align their portfolios with clear values. Far from signaling decline, the backlash offers an opportunity to place sustainable investing on a stronger, more resilient foundation.

Read more: LGT: global private bank for wealthy clients | LGT

– Author: Christopher Greenwald, Head of Sustainable Investing Europe, LGT Private Banking  

– This contribution is brought to you by LGT Bank, a valued bronze event partner of Building Bridges 2025.